When I saw that some of the stocks already selling at discounts a few days ago (https://discussion.fool.com/discounts-esp-smar-34289615.aspx) where down even more – close to (or more than) double digits this morning, I sprang into action.
First, I sold ALL of my TTD, SQ, and DOCU. The former two were flat, and DOCU was actually up for the day. But more importantly, they were flat or up in the last several weeks. These three companies have positive (non-GAAP) EPS, and that’s my guess as to why they haven’t been hit in this downswing.
Then, with a considerable cash cannon, I went to work. I closed out covered calls at a gain, and bought some calls – but that’s all I’ll say, because this isn’t an options board. I also bought CRWD and TWLO and SMAR shares. A little MDB too. Was I early with the buys? Quite possibly. But I still have a 20% cash position in case the discounts become even greater.
Guys, Crowdstrike’s PS is down to roughly 38. That’s less than ZScaler’s was a month ago! Except instead of growing revenue at 61% like ZScaler, Crowdstrike is growing revenue at 94%!
Remember: if we’re right that these are special businesses, they’re still just as special today even at cheaper prices. It’s a good time to have some cash and start deploying it. I’m not giving anyone advice, but for those of us who’ve been keeping a little dry powder (or a lot), I wouldn’t get too greedy waiting for the absolute bottom.
Just one Bear’s opinion. As always, do what’s right for you. And don’t listen to the trolls. Ask yourself when they’ve proven themselves. Saul posts his portfolio every month.