https://seekingalpha.com/news/3323208-barclays-upgrades-pure…
Well that’s a simple story of the most blatantly obvious secular trend we are facing today.
Good luck to all holders
Ant
Bert’s fairly recent write-up was quite a bit more in-depth.
https://seekingalpha.com/article/4135324-pure-storage-respec…
I had started leaning toward starting a position in Pure, and this upgrade prompted me to go ahead and do so. I started about a 1.9% position at a share price of $17.05 this morning (along with some Feb. $17.50 calls).
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Nice. Already in the money - smoothly done Volfan. I think this is one that warrants a buy-hi approach so kudos to you on the strong mindedness. Whilst I may have bought near the absolute bottom, I topped up last month after the pull back from the high just under 17 as the crossover to profitability nears. This one for me deserved a top 15 position which is exactly what it is for me now.
Ant
It entered at #14 for me, just ahead of Celgene and behind Hubspot.
volfan84,
Are you concerned at all that your Feb 17.50 Calls expire a couple weeks before their earnings?
– This…is the MaineReason
I took a little 2.5% position about 2 weeks ago, stimulated by Bear and Ant, I think it was, and then by reading Bert’s analysis, reading several earnings reports, and the last conference call.
May we all do well with it,
Saul
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volfan84,
Are you concerned at all that your Feb 17.50 Calls expire a couple weeks before their earnings?
– This…is the MaineReason
Nah. My intent was to capture part of this short-term rise in share price resulting from the increased attention with the Barclay’s upgrade rather than to get a huge bump from a binary event. I have put in a sell to close order for a portion of the option position at a price that would make back the initial outlay of the total position (plus a bit more) and leave a portion to ride “on house money”.
The price action so far this morning is making my move seem like a decent one.
Seeing that Saul had started a position recently makes me think that I will be watching this one for future additions to the shares position. Maybe my sub-2% starter position will end up being just the first “third” that I buy (though smaller than my Arista “thirds”).
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Some observations from me that I posted on NPI for anyone interested…
http://discussion.fool.com/jimbo-i-think-your-numbers-are-off-th…
Ant
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I had been listening to Ant on PSTG, but hadn’t done my own homework until recently.
I posted some info on NPI as well with a few thoughts and a bit of info on the AFA market and Bert’s articles.
http://discussion.fool.com/pure-storage-32946928.aspx
I’ve never seen as consistent a multi bagger sector as data storage in the last 10 years.
This was an interesting comment from Ant’s earlier post. It seems to be the opposite of traditional thinking about the storage market.
Most folks view a problem in the data storage market that follows something to the effect of “Shipments may increase 40%, but revenue may only increases 5%.”
Pure Storage appears to be the performance leader in their field by all accounts which is the primary reason I invested after reviewing the numbers. Speaking of the numbers, Duma brought up a potential concern of slowing revenue growth (down to 30%). In the link above, if you view the Whole Thread you can see some further discussion on that.
A.J.
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Pure is the leader in All Flash Array. It is currently growing very fast. OK. How is their growth going to be sustained? From a laymen viewpoint how would you answer the following question: Why would customer use more “all-flash- arrays” and what advantage does Pure have?
I am not that familiar with conventional storage market but I know that the storage market was ruled by technological wave. Each new wave flooding the preceding one and each one with a different leader. What would make Pure more resilient to technological replacement?
tj
Why would customer use more “all-flash- arrays” and what advantage does Pure have?..
…What would make Pure more resilient to technological replacement?
Good thing you requested a layman’s viewpoint in your post, TJ.
Succinctly, their software offers the advantages and provides their resiliency. Of course, that is currently and who knows what will happen.
A bit more layman’s detail…they store more at a lower cost. Through deduplication and some other fancy stuff, you can essentially store 10x data and only pay for 3x data or something of the ilk. I understand using their platform is much easier than legacy flash array providers.
That’s how I read it anyway.
A.J.
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volfan84,
Are you concerned at all that your Feb 17.50 Calls expire a couple weeks before their earnings?
– This…is the MaineReason
Nah. My intent was to capture part of this short-term rise in share price resulting from the increased attention with the Barclay’s upgrade rather than to get a huge bump from a binary event. I have put in a sell to close order for a portion of the option position at a price that would make back the initial outlay of the total position (plus a bit more) and leave a portion to ride “on house money”.
The price action so far this morning is making my move seem like a decent one.
Seeing that Saul had started a position recently makes me think that I will be watching this one for future additions to the shares position. Maybe my sub-2% starter position will end up being just the first “third” that I buy (though smaller than my Arista “thirds”).
Apologies up front if this is too much options-like for this board.
It is still way too early to say for sure whether selecting Pure Storage will turn out to be a deft move or not. Early on, it looks nice, and I have held on to the full option position to this point.
That said, this was the first time that I’ve initiated a starter position in conjunction with a some call options. At this point, I am very much liking the way I did this. My stock position was a 1.9% position, and the calls that I bought will give me a bit more time to decide whether I want to take that up to more like a 4 or 6% position. So, I get the benefit of having a small position that can be a nice impetus to really dig into the company and decide whether to keep the position, but also have the opportunity to add at closer to the price of the starter position if I do decide to make it a bigger position.
That said, options definitely aren’t for everybody. Once a portfolio size gets above a certain level, options may not be worth the trouble for a “long term buy intending to hold” investor (LTBITH investor).
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Vol,
The article you posted mentions synchronous replication. While I have no idea what that is, it was apparently something Pure could not provide and only recently has developed a solution for it. It was believed the lack of synchronous replication was a major hurdle for them in getting into large enterprises.
This article makes one feel like Pure has figured it out which is good news.
This was mentioned in one of Bert’s articles that I have on my ipad which is not with me now or I’d have copied the pertinent passage.
Anyway - Good news here it sounds like.
Thanks for posting the article.
A.J.
From the link below:
Said Satmetrix’s CEO, Richard Owen: “Pure Storage’s obtainment of an NPS of 83.7 is outstanding performance in terms of B2B and shows some ongoing improvement over last period results. Over 15 years, Satmetrix has been benchmarking NPS across multiple industries and geographies. We have seen very few consumer companies achieve higher than 75 and virtually no B2B companies achieve that score. In Satmetrix’s opinion, Pure Storage can reasonably claim that they are in the top 1% of B2B companies in terms of NPS performance, even allowing for margins of error in any statistical significance.”
https://blog.purestorage.com/best-nps-b2b-jumps-83-7-pure-st…
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In Satmetrix’s opinion, Pure Storage can reasonably claim that they are in the top 1% of B2B companies in terms of NPS performance, even allowing for margins of error in any statistical significance.”
Nutanix has a higher score. It is in the 90s which is the single highest score I’ve ever heard of.
But yes, Pure’s NPS was a minor reason I took a position. The biggest reason was their apparent lead in the AFA market from a technological perspective. They aren’t the biggest, but they seem to be the best in terms of performance and I believe the NPS score helps to confirm that.
Regards,
A.J.
1 Like