One of Wall Street darlings reported this evening. It’s the usual beat and raise!
I’m sure many of us still have some PAYC.
The last 4 Y/Y quarterly growth rate are 29, 31, 32, 32%.
Recurring revenue came is at 98% of total revenue.
Total Revenues of $150.3 million represented a 32% increase compared to total revenues of $114.0 million in the same period last year. Recurring revenues of $147.9 million increased 32% from the comparable prior year period, and constituted 98% of total revenues.
While the growth rate is somewhat lower than what we would like (or expect these days), PAYC is profitable and has an 84+% margin.
If ever there was a lesson in buy and hold this was it. Saul bought and didn’t hold, I bought and hold but then sold near the top last year thinking that was smart. Nope it just keeps on performing. The concern that its business model faces the restaurant business model with a lack of economies of scale coming from opening new restaurants or sales offices just hasn’t played out yet.
I was actually hoping that they would report mediocre results so I could cut them from my portfolio and hence reduce the number of my holdings, but they just crushed the numbers.
Either because I’m a lazy investor, or because these stocks are in other MF portfolios that I subscribe to, I’ve kept several of Saul’s stocks that he sold: PAYC, SHOP, even LGIH. I sold my most of my “investment” when Saul bailed but kept the “profit”. Most have doubled or near doubled again. ANET is only up 17% but I’m still hanging on.
The couple of MF portfolios that I have (Discovery, Rising Stars) show nice returns that are largely due to the higher allocations I put into the few Saul stocks in them.
I am slowly reevaluating the MF buy and hold for 5+ years on some of their recommendations (there are a LOT of stocks (70+!))to put more focus on this board’s selections.
Thanks again to this board for all the great advice.
I am slowly reevaluating the MF buy and hold for 5+ years on some of their recommendations (there are a LOT of stocks (70+!))to put more focus on this board’s selections.
I’d be very curious as to the results. Especially if you do the same with Saul picks.
The main lesson, for me, is to get out when the investment thesis changes, or if you really need to money. The thesis for PAYC never really changed, hence they keep chugging along. If the thesis doesn’t change, why get out?
The main lesson, for me, is to get out when the investment thesis changes, or if you really need to money. The thesis for PAYC never really changed, hence they keep chugging along. If the thesis doesn’t change, why get out? <<
I agree. I’ve bailed out with Saul on the stocks that he had concerns with. But on those otherwise good companies that he sold to fund what he thinks will be higher growth stocks, I kept. So far, so good.
Re: I agree. I’ve bailed out with Saul on the stocks that he had concerns with.
Guys, let’s be clear, Saul sold PAYC and gave his reasons for selling. I’m almost certain he allocated funds into a better opportunity, the likes of KITE, AYX, or better, so he is more than likely better off. He did not tell us to sell, and he told us he is not always 100% correct. What he has thought us though is how to fish and we can make our own decision on what to do when. For example, I am slower to sell, use small amount of options trading, and I believe a solid 30% growth rate is excellent. In addition, two of my top four positions are still SQ and SHOP. We have to figure what works for us and leave it there.
Here it’s =>20%, #1 in the port, due to the growth since buy in not even 24 months ago…
I know I’m supposed to ‘level out’ (goal to level here is ~~~12% per holding), but getting rid of some holding because it has outgrown its ‘limit’ by doing very well is quite counterintuitive…
Prolly will, some day, maybe later… (then use the cash to add to what?)
Hey LEGOABS,
“Guys, let’s be clear, Saul sold PAYC and gave his reasons for selling.”
Yes he did and no criticism of him was even implied because he encourages us to think for ourselves, so some people will make different decisions than he does as we live and learn.
Some work out and some don’t, but we’re all here to discuss our choices and question why we made those decisions, which is a good thing.
I tell my Saul fan friends that Saul usually sells if he has something that can make more money. This is coupled with how his interest wanes on earners below 40%.
Bert H. mentioned selling some of a stock because it reached last years highs. And he put the money in a stock we all know that was lower than it should have been in his opinion.
John
19.5% YTD, 36% TY
Finally recovering from all the pre-dip buys