The short answer is No!
Those fucking bastards have been lit up the past three months. So many weak hands got cut off and the ones who are still long are either insane or on the verge of spilling over. Just one more tip and half the shareholder bases are gonna vomit it all up. I’d be much happier buying into the sector after a severe flush, the type of crash that would make one think the devil himself was behind the pin action.
Can the market trade higher in spite of SAAS?
It can do whatever the fuck it wants to do. One thing is for certain and this goes without saying, the SAAS business model is easily the best in tech. I just don’t want to get caught naked out there with all of them towels snapping around.
Today I sold SGEN for a 17% gain, PIR for a 15% loss, and NAV for a 8.9% gain.
As you can see, I’m not fucking around here.
If you enjoy the content at iBankCoin, please follow us on Twitter
Fly can you write a short story one day on your infamous “Four Horsemen” trade?
I know of so many novice investors that jumped on the SaaS-momentum train when their P/S ratios were trading at 25, 30, 35, and even 40 times sales. CRM grew from 1 billion in sales to 10 billion over a 6 year period, and NEVER ONCE traded at a P/S ratio above 11 during that period.
The whole “SaaS” thing is bullshit–they are just software companies with a cloud-based delivery model charging monthly subscriptions as opposed to annual license fees. Whatever. It never warranted them trading at valuations that were 2x, 3x, and 4x historical software company valuations.
Many of the current SaaS stocks sell a tool or niche product that a larger software company can easily replicate and bundle. Look at what happened to once-hot PD as soon as TEAM got aggressive in the incidence response space.
Q3 Price to Sales SAAS https://equityzen.com/knowledge-center/newsletter/q3-update-saas-price-to-sales-multiples