$18.7m follower assets
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First new positions in a while!
Transaction journal entry for $IOT:
Only executing 2/3 of my normal initial position to have some skin in the game. Will add the remaining 1/3 if company continues improving gross margins and FCF/Sales, management continues to beat Q guidance and maintain for raise FY guidance. Also watching operating margins, ARR, customer count (primarily >$100K ARR and >$1M ARR).
Valuation metrics at time of purchase:
Trailing P/S: 11.7
Forward P/S: 8.0
PSG: 0.09
P/FCF: Negative
P/GP: 16
Transaction journal entry for $STEM:
Only executing 2/3 of my normal initial position to have some skin in the game. Will add the remaining 1/3 if company continues improving gross and operating margins and FCF/Sales. Feels like this company is on the precipice of really taking off. Revenue growth up massive last two years while gross margins have gone from (19%) in 2019 to (11%) to 1% to 11% through first 6 months of 2022. Plenty of operating leverage ahead of them. Services revenue must accelerate. Also watching their bookings, backlog, 12-month pipeline, and contracted ARR.
Valuation metrics at time of purchase:
Trailing P/S: 13.0
Forward P/S: 3.9
PSG: 0.02
P/FCF: Negative
P/GP: 202
