Hi Saul. What is your opinion on a stock VEEV recommended by David ? I’ve noticed many insiders are selling derivatives and others are selling common stocks before earnings. I would think that these insiders would try to hang on and must have an idea what the earnings may be viewed by stock holders come earnings report. I have a big stake in company since purchasing at lower stock. Are derivatives selling held by officers had to be sold at a certain time or these people are just wanting some cash? Lots of company officers are selling but the stock is up and no sign of deteriorating strategies. confused holder.
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Hi Saul. What is your opinion on a stock VEEV recommended by David ? I’ve noticed many insiders are selling derivatives and others are selling common stocks before earnings. I would think that these insiders would try to hang on and must have an idea what the earnings may be viewed by stock holders come earnings report.
Hi Manimotto,
I took a little look-see position for a short time in August 2016, then sold it after a few days. It seemed too expensive, not growing fast enough, and they seemed too under the control of CRM (who I thought actually might buy them out some time at a higher price). I decided that I had other stocks where I preferred to put my money. Sorry, but I haven’t followed it since, and I have no opinion on it. I see though from a look at the chart that it has continued to rise since I sold, just to spite me.
Saul
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Few quick things about veeva:
- It is expensive relative to it’s current growth when compared with other like TWLO.
- However their moat in the market they have chosen to address (life sciences) is huge and basically once a customer commits, they are likely retained forever given high moving costs. They are loved by their customers and have apparently chosen to address complex problems and simplifying it through their products.
- There is great interest for their product in adjacent markets (wherever there is strong regulatory framework). There is ample growth opportunities in their own nest for few years too, but considering all the adjacent markets this is likely to keep growing for a very long time. You may even see acceleration as adjacent markets take off. I particularly like this part since there is clear visibility for the business to grow for a number of years and room for their development teams to continuously improve product offering and deepen their moat.
- It is cash flow positive, and cash flow is growing at a much faster rate than topline (as would be expected for this business).
Given the above, I think it is always going to be a little expensive. I have a mid size position here (purchased in low 40s), but if it falls for no particular reason I would be looking to add at more attractive value points.
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I own a bit of VEEV but would have to say that their expansion plans are very much a speculation from an investors point of view ,we don’t even know what these markets are. Or whether Veev has any chance of success .A real pig in a poke
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