No. of Recommendations: 15
Gauchochris,

I find this “valuation” argument extremely short sighted. Again, I will use Zscaler simply because I know it’s numbers (not because of any other reason).

This could be wrong. It could disintegrate, the world rebel against cloud security, etc. assuming this won’t happen and Zscaler will continue as a successful growth investment, what will it be worth if it does $450 million this year, $630 million next year, another 35% growth the year after, all with high margin, extremely low churn, recurring revenue, and still growing?

I posture at this point whatever multiple the market deigns is irrelevant. The stock is getting so cheap for its fundamentals that someone will buy it out or the market will do what it always does and increase the share price based on nothing more than pure fundamentals.

Run the numbers yourself. Zscaler fails as a business then sur rah sur rah, but if it does not the Weiss report is complete and utter worthless jargon in the context of investment opportunity beyond a few quarters.

Each to their own I suppose. Charles Schwab’s experience be damned as this time it is different!

Tinker
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