No. of Recommendations: 6
Hello Tinker,

Today is a good example of the conundrum that we are facing in our investment choices:

ZS is down because it is overvalued. NTNX is down because it is undervalued. We can not have it both ways and yet I really like both of these.

Because NTNX produces such wonderful results, one wonders how the market can price them so low. It is easily comprehended when one grasps that hardware pass-through revenues are in the year earlier
quarter but significantly reduced in the just reported Q. They are significantly growing software and service billings, but also adding measurably to the suite of products they are bringing to market. Hard to see where revenue growth will slow considerably. And the valuation screams BUY!

ZS, according to many, is priced for perfection. Having just attained it, where is the upside? The mantra here has been that the market recognizes greatness and we can't buy these cheap.

Substantively, each of these companies are over-performers. Duma's valuation test would give a big edge to NTNX. I really like them both and bought them both to increase my positions today. As I have only been in ZS less than a month, NTNX is a 3x larger position but I am on a course to bring ZS up.

Best regards,


P. S. I happily hold PVTL. Hang in there.

P. P. S. Nutanix CEO had very direct comments about VMWare competition in response to an analyst's question in the recent call. Enjoy!
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