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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi team,
Just how big is this cloud anyway? Since IBM announced its purchase of Red Hat, it seems every tech stock and their brother claim to be a cloud company. I got several Seeking Alpha emails identifying about 20 or more companies that are now M&A candidates in the cloud. There are too many to list here, but two companies that I follow stood out to me; one that was there and one that was conspicuous by its absence.

I have been following DOCU for awhile. It was on the list. It seems it has a unique electronic signature software/platform that resides on the cloud and that would be an attractive functionality for bigger companies in the future for document authorization. The one that was absent from the list was BOX. I had been in that stock earlier the year but lost interest after erratic earnings. It looks like the risk/reward may be attractive here, but I just don’t see any real competitive advantage that it holds over many other cloud candidates. Earlier this year, you suggested that MSFT could potentially be interested. What sets BOX apart from many other cloud companies and is the outlook for DOCU and/or BOX enhanced or not by the IBM deal?

Thanks again for your thoughts,
dave
Read Answer Asked by Dave on October 31, 2018
Q: If Apple's earnings are down after reporting on Nov. 1st, will the market follow the fall of FAANG stocks? Would you continue investing in FAANG or start looking at other tech companies? If so, which would you recommend and what would be some good opportunity's if we see a slight crash in market?
Thank you,
Read Answer Asked by Kevin on October 30, 2018
Q: PAT announced today a firm offering by CGC & others to purchase a large block of common shares along with warrants, etc. I currently own 20,000 shares of PAT which of course dropped nearly 14% this morning. However, I am still positive as I purchased at a much lower price. Would appreciate your expertise as to what position and or options I may have with respect to this transaction & in particular the Warrants. Thank you.
Read Answer Asked by Robert on October 29, 2018
Q: Hi 5i,

With the market correction, I am looking to add to some positions while things are on sale. I am looking at TSLA, which reposted good results last week and thus the stock started to rise. It also did pretty well today in a negative market. I have read your other answers on TSLA. Has you opinion become more positive after the recent results. Thanks 5i
Read Answer Asked by Jim on October 29, 2018
Q: Looking at Microns history it has been quite volatile. Between the end of 2014 and mid 2016 it fell over 70% which ended up being a fantastic buying opportunity. Looking at it now, it has fallen over 40% since its most recent peak. If it were to fall a similar % as 2014-2016 it could go all the way to 20 bucks.

Looking at the most recent balance sheet however, the company paid down a massive amount of debt in 2018, and generated a ton of cash. Is there any estimates of how much cash/share this company could have at the end of 2019? If 2019 is anything similar to 2018 it looks like a decent % of the market cap could be in cash, which makes me think a similar decline as 2014-2016 is unlikely . Is the risk/reward getting increasingly interesting here?

Thanks!

Read Answer Asked by Joel on October 29, 2018
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