Wednesday, September 15, 2021

Selling Acuity Ads @$7.42 (4.58% Gain)

 After Apple came out limiting data that 3rd party ad platform can use to track customers, it seems that the space is cooling off.

I have two positions in this space - The Trade Desk (TTD) and Acuity Ads (ATY).

- The Trade desk is a bigger company, more established and set to continue to grow. I'm still very bullish on the space in general but think one position will suffice.

- In choosing which position to sell, I have no doubt - hold the big player.

- Selling ATY with a small gain and making room for my September investment.

Friday, August 20, 2021

Selling McCormick (MKC) @ $87.07 (41.49% Gain)

 Selling McCormick to make room for a more aggressive investment. I bought McCormick at the hight of the pandemic after it took a hit together with so many other quality stocks. 

- The investment turned out profitable but this portfolio is about driving more aggressive returns so I'm exiting this position.

- I love this company as a long term investment in a solid portfolio.

Buying Procore Technologies (PCOR) @$87.12

 Procore Technologies is a provider of construction and workflow management cloud based software, aiming to bring construction into the digital age.

- Construction is an industry with on of the lowest technology adoption rates in the market. According to McKinsey, construction is one of the least digitised sectors in the world despite accounting for about 13% of global GDP.

- Procore software helps connect all members of the construction process. To solve the problem of having to get all participants to pay for the service, Procore does not charge on a per-seat basis but charges the contractor according to the estimated dollar value of the project. This enables the contractor to invite all members of the construction process to download the app for free.

- Due to overall high demand for building, many companies are facing backlogs and efficiency on the job site is becoming more important than ever. This means leveraging technology and Procore is the leader in the space.

- The opportunity for Procore could only materialise in 2011 with the introduction of iPads to worksites so this market and the opportunity is relatively new.

- Procore provides it software for education purposes to 85% of construction management universities in the US. 

- Founded in 2002 by Tooey Courtemanche, who is currently CEO.

- Procore operates in 9 countries. 

- The stock is a recent IPO. First quarter reports show $123M in revenue, 27% rise Yoy.

- Customer count: 11,149, 19% higher than last year.

- Market Cap is at $11B.

- I like the founder/CEO. I like that this is very early stage. I like that there's no real competition and I like the tailwinds of a booming construction market.

Friday, August 6, 2021

Adding to Fiverr International FVRR @ $169.12.

 Fiverr stock dropped 25% yesterday after the company lowered guidance. As people go back to work it makes sense that less people will depend on gig jobs. People are traveling more, out of the house more so doing less gigs.

- I think this is an overshoot by investors.

- Fiverr actually delivered a stellar quarter and my thesis for the company remains bullish.

- Revenue was up 60% year over year.

- Spend per buyer was up 23%

-  Bottom line: The gig economy will continue to grow and Fiverr will continue to grow with it.

- I'm up 111% Since June 2020

- Added 20% to current position.

Monday, August 2, 2021

Adding to Pinterest (PINS) @ $58.3

 Pinterest dropped 18% after number of US Monthly Active Users dropped 6%.

To me this is a buying opportunity. Post pandemic, people are out of the house again and it makes sense that user count will drop.

Pinterest currently have an ARPU of $11 compared to Facebook's $80. 

To me, the Pinterest story is about getting that ARPU up and it seems like they are on the right path. After all, this is a service that helps people get inspiration to do projects and eventually buy things.

I've added 7% to my position. 

Tuesday, July 27, 2021

Buying Berkshire Grey (BGRY) @ $8.82

 Berkshire Grey develops AI based robotic systems to facilitate in e-commerce shipping.

- Amazon controls about 50% of total US e-commerce.

- Of the rest, 95% of shipping, handling and packaging are currently done manually.

- Berkshire Grey is offering US merchants the same (or similar) technology that Amazon has, but those individual merchants can't afford to develop on their own.

- Berkshire Grey will "Take over" the Merchants warehouse and automate it.

- Berkshire Grey will charge a setup fee and per transaction cost.

- This concept makes a lot of sense to me. In order to compete, merchants need to automate. In order to automate on the level that has achieved, the rest of the merchants are, in a sense, pooling resources to compete, and Berkshire Grey is the pooling agent.

- Founder and CEO is Tom Wagner, former CTO of iRobot, maker of the Rumba who started the company in 2013.

- The company claims that using their tech, merchants will achieve a 90% reduction in unload time. Up to 3 times increased warehouse capacity. 70% reduction in overhead costs and up to 35% reduction in square foot floor space. 

- Investors in Berkshire Grey include: Khosla Ventures, Softbank, Canaan Partners, New Enterprise associates and AOL founder Steve Case,

- Customers include Wallmart, Target, FedEx and TJ Maxx!

- This is a 5-10 year play which I'm very bullish on. With initial customers like these, there are many reasons for optimism.

Tuesday, July 20, 2021

Selling Gravity (GRVY) @ $98.82 (28.14% Loss)

 Gravity is a south Korean video game company.

- Gravity generated $93 Million in revenues in Q1.

- 43.6% of revenue comes from a single game - Ragnarok M: Eternal Love.

Though revenue and profits grew, Revenues from Ragnarok were down 6.6%. This means the game is loosing popularity and that Gravity needs to launch another hit product. Since there is no way of knowing if such a hit is in the cards, I'm choosing to exit this position. This is especially relevant in the gaming space.

- My takeaway from this investment is to avoid "One hit wonders" in the future.