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Video: Our Stock Picking Strategy

About a week ago, Dan Shvartsman from Seeking Alpha interviewed Knox Ridley and I about the Zoom call we made last Fall, the trade made In January in the low-$60s, and the subsequent trades made in March in the low $100s and mid-$100s on our premium site. We discuss whether the company’s valuation matters now, and how our research site determines if we should hold on or add to the position amidst the rally.

We also discuss the hard questions about Zoom, including the security issues the company faced in April and why removing friction from video conferencing is what led to my high conviction prior to the coronavirus.

The interview touches on the cloud software market as a whole, where I discuss why I’m cautious on Fastly for its edge computing product despite the stock price being neck-to-neck with Zoom Video. I also expand on my strategy for analyzing tech stocks, including why I lead with product first, as well as understanding early adopters and user behavior.

Knox explains his technical strategy regarding Zoom and the importance of letting your winners run. He also discusses other topics, including the effects of the coronavirus, the cloud sector, and also touches on Datadog.

Knox’s strategy is to open trades on breakouts, while maintaining a very tight stop loss. He sets up a 5% to 10% risk stop loss, but does not put trailing stop losses on winning stocks.

Watch the full video here:

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I’m an industry insider who writes free in-depth analysis on public tech companies. In the last 12 months, I predicted Facebook’s Q2 crash, Roku’s meteoric rise, Uber’s IPO flop, Zoom’s IPO success, Google’s revenue miss and more. Be industry-specific. Know more than the broader markets. Sign up now. I look forward to staying connected.

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    Published inTech StocksVideo Footage

    One Comment

    1. It appears your thoughts on Zoom are it is still somewhat in the early stages of a run that will last some time. Can you tell me if what I am saying is correct? It just seems to me that the party is a little late when people everywhere have heard of Zoom, but I’m not sure I am seeing things correctly!
      I did get a position in Data Dog (DDOG @ $96). I had been watching/researching it (as best I can ) for a while but hearing you discuss it made me get off my donkey and take a position, LOL.

      In closing I would like to say you are my secret weapon, I look forward to reading everything you have to say at Market Watch (or anywhere), take care and please keep giving those of us that are not as gifted as you insight and direction to all things in the Market.

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