Cloud 101.  Part 1.

Posted by Minerva on Jul 20, 2020 11:13:11 AM

Cloud software stocks have at most times in their relatively short history traded at valuation multiples beyond the ken of many mainstream investors.  This causes such investors to stay away from these stocks.  Hang around the bars, trading rooms and home offices occupied by said investors and you will hear mutterings of "valuation is crazy ... will all end in tears ... I'm not buying that".  And upon any given market paroxysm du jour, or at least de l'annee, when cloud stocks tumble for a moment, those same investors can be heard to say "there - you see - told you so - it ended in tears".  Whereupon they don't buy cloud stocks because, well, the vertiginous drop has proven that the valuations were lunacy in the first place.  Only for cloud stocks to get back up, dust themselves off and resume their moon-shot trajectory.  Still without those mainstream investors as shareholders. 

Now, this doom loop happens because investors have been educated to believe that software stocks are different.  Hard to understand.  Risky.  Could go bump in the night at any moment.  In fact, the best cloud software companies are safe as houses, and any thoughtful investor can understand them.  In this, Part 1 of our "Cloud 101" series, we begin our journey walking you through what good looks like in the cloud.

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Topics: Investing Strategy, Public Posts, Cloud

Wait, Space Is Cold?

Posted by Minerva on Jul 15, 2020 12:30:07 PM

Official: No-One On Wall St Cares About Space Anymore

Remember when space was hot?  The Virgin Galactic reverse IPO, its stock peaking in the $40s after a thorough hyping by Morgan Stanley and Credit Suisse; SpaceX all over the news beating out Boeing in the race to ferry US astronauts to the ISS from US soil once more; and old-line stocks like Aerojet Rocketdyne hitting all-time-highs. 

No longer.  These names are all beaten down from their pre-Coronavirus levels and have not much participated in the recovery rally.  Space has officially Gone Cold.  Fortunately, this presents a smart buying opportunity for those with event horizons beyond the immediate. 

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Topics: Investing Strategy, Public Posts


Posted by Minerva on Jun 4, 2020 11:38:31 PM

Swinging For The Fences

We were asked recently by a subscriber to explain how we thought about short vs. long term hold periods for the space stocks we cover. Here's the question:

"[I] understand the importance of keeping a tight grip on buy/sell range for trading profits, but given the space industry should be at the dawn of something big, at what point (and which companies) do we look to 'buy and hold' with a long term price target to take advantage of potential 'multi-baggers' over time… thanks!"

Like all the best questions we get in our real-time services, this one was simple but caused us to sit back and consider our answer carefully. So, here goes.

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Topics: Investing Strategy, Virgin Galactic, Maxar Technologies, Multibagger, PagerDuty, Public Posts