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Entries from June 2018

Epic Rally In Tandem Diabetes Care, Can It Continue?

June 30th, 2018 · Comments Off on Epic Rally In Tandem Diabetes Care, Can It Continue?

A magnificent share rally in Tandem Diabetes Care has ensued this year as it became clear to investors that the company isn’t going belly-up. Quite the contrary, revenues are increasing at a very brisk pace (44%) and the prospects for this to continue are pretty good. However, the company still makes very substantial losses, and […]

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Tags: TNDM

Trade Tensions No Big Deal?

June 30th, 2018 · Comments Off on Trade Tensions No Big Deal?

According to some, the trade tensions are a sideshow and the implication is that they can be safely ignored by investors, at least for now. The real crisis is in emerging markets, which are under strain from a tightening Fed and a rising dollar. We think trade tensions are already having a negative effect on […]

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Tags: Trade

Paycom Still Has Gas In The Tank

June 30th, 2018 · Comments Off on Paycom Still Has Gas In The Tank

Another fast-growing SaaS cloud business platform which keeps on adding modules and functionality. Unlike others, there isn’t much of an effort to up-sell, in an order to focus on customer ROI first. This is a sensible policy, and leaves some levers for later, so despite the already steep valuation, we think the shares have further […]

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Tags: PAYC

NAPCO Has Considerable Upside

June 27th, 2018 · Comments Off on NAPCO Has Considerable Upside

The shares of NAPCO were range-bound for quite some time but they have suddenly taken off after a stellar third quarter. The company is driven forward by increasing recurring revenue, brisk demand for school safety products and operational improvements. The future is looking bright as the company will likely benefit from both gross and operational […]

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Tags: NSSC

Corporations Don’t Invest Enough

June 27th, 2018 · Comments Off on Corporations Don’t Invest Enough

We’re experiencing a solid economy with low unemployment, but easy money and now fiscal stimulus are hiding underlying problems from sight. The biggest problem is perhaps disappointing business investment, which is the key ingredient for making the economy future-proof. It is curious, given businesses have enjoyed record margins, profitability, cash hoards, record low interest rates, […]

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Tags: Economy

Shares Of Carbon Black Are Fully Valued, For The Moment

June 27th, 2018 · Comments Off on Shares Of Carbon Black Are Fully Valued, For The Moment

The security outfit shot up belatedly after promising Q1 figures, but we think this is going a little too fast. Nevertheless, there is a lot to like. The company has had a successful IPO, it’s moving to the cloud rapidly adding apps to its platform. There is some operational leverage already and cash bleed isn’t […]

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Tags: CBLK

New Relic Needs To Cool Off

June 21st, 2018 · Comments Off on New Relic Needs To Cool Off

The shares trade at nearly 7 times their 2022 revenue target. But there are plenty of things going for the company, revenue growth, incredible up-sells, operational leverage, positive cash flows and non-GAAP profitability. How much are investors willing to discount the bright future? Source: New Relic Needs To Cool Off – New Relic (NYSE:NEWR) | […]

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Tags: NEWR

MDC Partners Has Hit An Air Pocket

June 21st, 2018 · Comments Off on MDC Partners Has Hit An Air Pocket

The company’s share price is less than a fourth of where it was two-three years ago and the company just presented another rough quarter. The business is volatile, and visibility is very low, but we fear there are more underlying problems. However, whatever the long-term path, the shares are still more likely than not to […]

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Tags: MDCA

Riding The Finisar Waves

June 21st, 2018 · Comments Off on Riding The Finisar Waves

Given industry characteristics, few companies in the optical network sector are long-term holds. What investors can do is ride a wave in which demand and cost cutting outpaces the price erosion, and that looks like it’s happening starting the next quarter. There is the additional boost from a more secular market like 3D sensing, and […]

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Tags: FNSR

Morningstar’s Rally Is Stretched

June 21st, 2018 · Comments Off on Morningstar’s Rally Is Stretched

Terrific corporate performance and the shares have been on an enormous winning streak with the RSI reaching 95. The shares need cooling off, as valuations are substantial and the performance was boosted by temporary tailwinds. Revennue growth is likely to continue and buybacks are another source of EPS growth, but we don’t see much room […]

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Tags: MORN