Friday File: Annual Review Part Five

More Real Money Portfolio re-analysis, including thoughts on Okta, DocuSign, Fastly, Elekta, Wrap and more... plus a new one to watch

By Travis Johnson, Stock Gumshoe, February 21, 2020


Earnings season is winding down, with only a few of my larger holdings yet to report, and so is my Annual Review of all of the stocks in my Real Money Portfolio — so I’ve got another installment of that for you today, sharing my updated opinion on a bunch of holdings (including a few buys and sells along the way), as well as a new stock for consideration and some updates from the week that was. We’ll start with the crazy expensive “cloud” stocks, since those are all sort of connected by their valuation.

Okta (OKTA) 1.6% position, $42.50 cost basis. I’ve taken some profits in mid-$130s today (and have sold off about 40% of the position over the past year), but will hold most of my shares going into earnings. Rapid growth in the sales backlog (RPO) could boost the shares sharply higher as they sell more to large customers, but at 30X sales I think it will have to be a spectacular quarter (March 5) to justify the valuation.

Okta (OKTA) is a cybersecurity/”Identity as a Service”