Bear,
Thanks for the call out. While I obviously agree with you conclusion, I disagree with your timing. PVTL is a bit under a 6% position for me and I’ve not sold, yet. I think they’ve got a decent runway in front of them at this point. As you mentioned, they’ve got in the vicinity of 350 customers at present. While I do believe that their TAM is somewhat constrained, I don’t think 350 customers is pushing the upper limit.
I think they’ve still got a number of high growth quarters in front of them before they approach saturation. What’s the magic number? Got me there, I don’t know. But I’m assuming if they show a couple of quarters of slow down that will be indicative of strain. I might not wait that long, I’ll be watching this one pretty closely. But for now, I think this is still a strong position.
I guess we’ll see.