Friday File: Selling Royalties, Buying Value and Asset Management
by Travis Johnson, Stock Gumshoe | September 23, 2022 5:33 pm
What to do when the market feels like it's swooning?
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Source URL: https://www.stockgumshoe.com/2022/09/friday-file-selling-royalties-buying-value-and-asset-management/
With bargains starting to pop up everywhere even in tech is there a reason you haven’t dove into Adobe? Seems like a company that you normally jump all over when its in the dumpster.
Not a particular reason, haven’t looked at ADBE lately… other than to notice that investors weren’t thrilled with their latest big acquisition.
Thanks for your positive perspective. I am unhappy to look at my portfolio. Put in a low limited order for S&P 500, ended up executing the order. Of course it went down right after I buy. Seems to be a pattern this year.
Thanks, Travis! I always look forward to your blatheration and chattery.
On your DOCU comment – I hold DOCU for more than 2 years as I thought their service offering is compelling regardless of where the work is done – and Digital Document chains don’t go well with “hand signatures” (although I am puzzled by the lack of clarity on biometrics). I’m worried about the fact that the Document management chain is managed by several far larger competitors (Adobe, MSFT and to some extent Google) and it is far easier to add signature management to document management than to integrate digital signatures to a document management chain and Adobe has indicated often that it will have signature management.
On your Nvidia comment I am still holding some (after selling some). My biggest issue with Nvidia is that their attempt to buy ARM (the license provider for most of the CPUs sold today) was blocked by the antitrust regulator and (IMHO) with it they have lost the chance to become the “total compute” company and dominate “just” the accelerator and networking areas. And probably I was not the only one thinking so as their valuation went down much more than you would expect as a result of having them give up sales to the big China Tech.
Thanks for the comments. I think NVDA’s focused leadership in the high end, including the OS to build on those GPU chipsets, is still valuable and will work out well in the long run, but at this valuation there’s no room for disappointment.
And DocuSign is integrated with most of the big platforms, but you’re right that they also have plenty of esig competition. The e shock over the last year was that they had to find customers and push the sales force, and they weren’t ready — they had gotten fat and lazy after 18 months of just fulfilling orders in the work from home rush, and having to work for it was a shock to the system. Given the pace of development, they may have missed their chance to build the brand into real dominance of their niche… but we’ll see, they’re still growing and self-sustaining, so there’s some room for optimism.
On Goosehead . . . . . . They met with a group of institutional investors this past week. Mark Jr was impressive with his knowledge of the business. Their rationale is they need a more operational oriented CFO and this is a natural progression for the growing enterprise. My sense is you may have to believe that Mark Sr actually knows what is best for the business here. Crazy notion, I know.
DBRG – what impact if any does the investigation of Tom Barrack for his illegal back-channel access to Trump and his administration to the benefit of UAE, 2016 – 2018 have on the current share price – since this became more public September 21 the share price of DBRG has fallen to a now post-split $13 – at this pace it will find its way back down to the $3 – $ 4 range again… it can do a reverse split again!
I’ve been under the impression that they cut ties with him in time to be out of that particular mess, but I’m certainly not an expert on any legal issues that might be lingering.
For NVDA: I would highly recommend reading https://stratechery.com/2022/nvidia-in-the-valley/
(I work in tech in the Silicon Valley)