Below is a summary of our stock calls for our General Tech Portfolio. Our selections are based on: Relative, non-traditional and traditional valuations that vary depending on its sub-industry A company’s pipeline for innovation satisfying demand The impact of select index funds as a proxy for all funds Other factors that we deem important to a particular stock price. Rating # of Stocks BUY 15 HOLD 100 SELL 43 Below is a list of our stock ratings as of June 18th, 2019.
SPLK
3 posts
On Thursday February 15th, Splunk’s (SPLK-NASDAQ) share price closed at $96.35. With the Thursday close surpassing our target of $93, we recommend investors no longer purchase SPLK shares. SPLK is not a FAANG play – Recall we launched our BUY recommendation on December 29th with the share price at $82.84. Our valuation is based on a fiscal Q1 2019 trailing 12-month free cash flow target. With the equity markets continuing to surge, our target was reached weeks before the company’s March 1st fiscal Q4 2018 earnings release. In comparison to other large cap tech stocks however, SPLK has a below average r-squared […]
Stalking Splunk’s sales force – As Splunk’s full-year revenue guidance has historically been materially different from results, we decided to track approximately 800 of Splunk’s quota carrying sales force, including estimated quotas from current and potential future sales managers as per job postings. Sales force quotas are key to forecasting accurate free cash flow – Estimating revenue per quota carrying sales person is key to determining future billings, operating leverage and free cash flow growth. The stock price primarily follows a trailing 12-month free cash flow yield. Using this metric makes sense to us as it does not punish Splunk or other Big Data […]