In reading your responses, it seems to me that you are weighing some qualitative factors much more than what the numbers are showing.
Hi Chris, I thought that over, and you are undoubtedly correct. I do weigh some qualitative factors more than the numbers. For example:
I don’t trust Chinese companies, no matter how good the numbers, and I also worry about the political risk.
I don’t feel comfortable with internet hardware companies, especially chip companies, no matter how good the numbers.
I love companies that have recurring revenue, and give that extra consideration.
As I noted in my comments on Blackline, I feel their alliance with Deloitte is very important although it hasn’t affected the numbers yet.
I value Talend’s management’s sense of euphoria, when they say “Our win rate is ridiculously high!” and imply that they have no real functioning competition for the moment.
I feel that the sense that Arista’s problems with Cisco are gradually fading is an important factor, although I can’t put any numbers to it.
I felt that my unease about WIX was more important than its good numbers. There are plenty of great companies that I don’t feel uneasy about.
In fact, I think a big reason I read the conference call transcripts religiously is unconsciously looking for qualitative factors.
Hope that helps,
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