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Friday File: DocuSign Craters… What to Do?

Closing out a tough week for tech stocks -- Buy? Sell? Close your eyes? Here's what I've done in the Real Money Portfolio...

By Travis Johnson, Stock Gumshoe, December 3, 2021


This week, as I check in on my portfolio and my watchlists, I feel a little greedy… there seems to be a bit of panic in the air, and that means I want to buy a little of almost everything. It’s a bumpy time in the markets, for sure, and I have no idea what the broad market averages or the economy will look like in a few weeks or a few months, but there are a lot of stocks that sit in an attractive buy range for me right now.

So although I do like having some “dry powder” for buying on days when things might get far uglier, I did do a little bit of buying today. Those purchases are basically in two categories… I microdosed into several companies that I’d say slot into the “boring” category — relatively predictable and reasonably valued — and I also added to two stocks that have been nosebleed-growth darlings, but have fallen on hard times and scared away a lot of investors.

The short of it? I microdosed more into Brookfield Asset Management (BAM), 3M (MMM), Match Group (MTCH), WESCO (WCC), and Markel (MKL). None of them really had any news or updates in the past couple weeks, but all are solid businesses that I like, and they’ve recently weakened and hit more attractive valuations, so they are comfortably below my “buy up to” prices (most recently that’s $60 for BAM, $200 for MMM, $1,275 for MKL and $145 for WCC… I have not posted a “buy up to” price for MTCH, but have now bought at $170, $140 and $125 as it’s been falling over the past three months).

And I bought a little more heavily than that (call it a “double microdose,” I guess), into two of my higher-growth story stocks, Roku (ROKU) because it has fallen to what I consider a very appealing price as multiples across the growth universe have collapsed (I still think it’s a pretty easy buy in the low $300s, but it now looks like it might dip below $200 — that’s less than 10X current-year revenues, for a company that is profitable and, I think, will probably keep growing sales at 30-40% for years), and DocuSign (DOCU) because it has crashed back down to a reasonable valuation after a disastrous quarterly report last night that portends a pretty ...

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