So, the selling on Square is a ridiculous over-reaction in my opinion. I would say this is one of those opportunities when a big player decides to sell to reduce risk and also because of the over all drop in tech, and it causes a temporary crazy sale price. Everyone should do their own due diligence, but I think this is a gimme - buy for a quick turn around, as I previously did in AMD.
I bought a full position this morning (having always been waiting for a good entry point), and have also bought Dec 21 70 Calls at around $6.
Concerning PVTL, I was a bit happy about the earlier punishment of the stock . The management needs to clearly articulate their strategy for the mid-market, which is where most of the money will be in the long run. I hope this has focused them on long term revenue growth beyond their current huge customers. This was always my concern about their business. Otherwise I thought the last quarter’s numbers weren’t bad and didn’t warrant the huge drop.
RedHat’s revenue growth in Containers is sputtering - not at all impressive. I think PVTL is in a clear leadership position in the cloud-native tools market. Of course there is risk that they won’t manage the move toward the mid-market, but every stock carries risk, and I think PVTL is in a great leading position in their industry. This looks to me to be a great risk/reward tradeoff. I consider this an excellent price to start or increase a position, and I have bought more PVTL.
I took nice profits on the CLDR HDP merger, and am out of both stocks. I don’t trust mergers of startups in the same market. I’ve worked at some of the biggest investment banks, and they always suggest these mergers since they make big fat fees on them, and the CFOs of the companies always like the numbers. But my question is whether either CEO would think about this, if they had any other choice to shoot up their revenues. To me this is a red flag - these companies don’t have any other ideas on how to shoot up their revenue. I’m out.
A quick note on me - I’m lurking, and not even too much of that these days - I catch up when I can to look at new stock ideas - this is such a great community that I can get very valuable info quickly.
Besides lots of busyness at work and home, I’ve also been asked by a to write a book on data patterns for API-based development and microservices. Since I’m ridiculously busy, I said yes, so now I have even less time.
I will respond if someone thinks my opinion is of value for a decision they want to make, but since I’m not on these boards very often, the best way to ping me is via the little button that sends a reply to my email.