Interesting coversations and random musings

Investment Analysis Clubs Saul’s Investing Discussions
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Hi All,
I’ve had the pleasure of talking with some interesting people lately and I thought I would share. I’ve already posted the alteryx one before but I figure I might as well include it. Everything below is paraphrased from memory. Any error is mine.

Re: Alteryx. From a data scientist who consults on projects when projects have failed or are too complicated. Good software, good tools for getting your data clean, can do a lot but she prefers more control and doing her own programming.

Re: PSTG. This is from a high up at NetApp. “I would love to put them out of business”, “they have great marketing and messaging” , “limited breadth of products” “one trick pony”

Re: NTNX From the high up at NetApp, “we have a hyper converged product too”, “we are more flexible”

Re: Netapp, “we are more a software company than a hardware company” , “you should invest in us, we do everything”, “we are profitable and growing”

I wish I had more time to talk to him. The guy had been in the industry for almost 20 years and we liked the same books.

Re: FB and oculus specifically. “ My entire team has left, quite or retired. Never seen such high turn over in the course of a year”

Re: silicon valley and the bay area. Lots of people leaving the bay area due to cost of living. Going to portland, seattle and reno. Our house has increased value 60% in 3.5 years!

Re: Beer. From the founder of one of the first major microbreweries that has since gone national and international. “The space has gotten too crowded, it isn’t sustainable” I felt this way when the MF recommended sam adams.

Re: High up from a semi-conductor supply company. They sell to Intel, Global Foundries, Samsung, TSMC etc. He said he would never invest in the foundries. They have no ability to control when they upgrade or how much they upgrade. He said his company has all the pricing power. One a side note, his first job with the company when he was in his early 20s was managing a billion dollar project!!

Re: new relic. I saw a guy in new relic puffy vest strut into the restaurant like a peacock in heat. The only problem is it was 85 degrees out. Made me instantly dislike him. I realize this adds no value to this post.

And finally, I sure have more fun when stocks go up! This had to happen though, the EV/S multiples were getting crazy. We need the company’s earnings and sales to catch up with their stock prices.

-Ethan

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The NetApp part I’ll take with a grain of salt, I couldn’t imagine saying anything bad about where I work, especially if I’m in management.

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The NetApp part I’ll take with a grain of salt, I couldn’t imagine saying anything bad about where I work, especially if I’m in management.
yes, i should add he said that with a twinkle in his eye. I’ll take a look at them here at some point

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If he’s been at NetApp for more than the last 2 years, he’s seen some good, some bad and some plain ugly over even that short of a time period, so I wouldn’t doubt the veracity of whatever he’s claiming. That said, the turnaround story on that stock is something for the record books, considering how much doom and gloom there was around it not too long ago when it was in the $16s…

(I’m still surprised someone didn’t cough up $5B and take the the whole thing private a la Dell/EMC, as the free cash flow alone would have covered the debt in 5-6 years; after that, just lots and lots of gravy. I imagine there are some capitalists out there now kicking themselves for not trying, now that the stock is approaching the $80s.)

Most recent 2-3 quarters of earnings from NTAP have been super-solid, so perhaps deserving of the 300% stock price increase.

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Re: new relic. I saw a guy in new relic puffy vest strut into the restaurant like a peacock in heat. The only problem is it was 85 degrees out. Made me instantly dislike him. I realize this adds no value to this post.

This gave me a good much needed laugh this afternoon. Value add indeed.

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Funny you say that about New Relic. I had exact same distasteful feeling upon learning their name is merely an acronym for founder, Lew Cirne.

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