Stock Picking & Investing, BluSuit

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Stock Picking & Investing

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Equity Bottom-Up

Datadog, Inc. provides software solutions. The Company offers cloud-based monitoring and analytics platform which integrates and automates infrastructure monitoring, application performance monitoring, and log management for real-time observability of customers. Datadog operates worldwide.

<ul><li>At the moment of writing this, it’s 2:30 pm on a Sunday and I am in a ground blind. Every year at about this time of the year I take a few days off of work to unplug, have a few drinks with other family members and run off to the middle of the woods.</li><li>I get some of my best thinking done out here while I wait for a White Tail Buck to come by. It’s blissful.</li><li>Regardless of where I am or what I am doing, I am and always have been committed to maintaining my transparency, my thoughts and my investing story/process to all of you.</li></ul>

At the moment of writing this, it’s 2:30 pm on a Sunday and I am in a ground blind. Every year at about this time of the year I take a few days off of work to unplug, have a few drinks with other family members and run off to the middle of the woods.I get some of my best thinking done out here while I wait for a White Tail Buck to come by. It’s blissful.Regardless of where I am or what I am doing, I am and always have been committed to maintaining my transparency, my thoughts and my investing story/process to all of you.

SPDR S&P 500 ETF Trust is an exchange-traded fund incorporated in the USA. The ETF tracks the S&P 500 Index. The Trust consists of a portfolio representing all 500 stocks in the S&P 500 Index. It holds predominantly large-cap U.S. stocks. This ETF is structured as a Unit Investment Trust and pays dividends on a quarterly basis. The holdings are weighted by market capitalization.

<ul><li>Emotions run high in bear markets. Often times, it’s very difficult to post analysis because it doesn’t always follow consensus.</li><li>But, the purpose of this newsletter is to be 100% transparent in my thinking which may not always be 100% popular.</li><li>In this case, we are going to take a look at a historically accurate bottom indicator and run specific price targets on the S&amp;P on a valuation perspective.</li></ul>

Emotions run high in bear markets. Often times, it’s very difficult to post analysis because it doesn’t always follow consensus.But, the purpose of this newsletter is to be 100% transparent in my thinking which may not always be 100% popular.In this case, we are going to take a look at a historically accurate bottom indicator and run specific price targets on the S&amp;P on a valuation perspective.

Nasdaq, Inc. operates a global stock exchange. The Company provides trading, clearing, exchange technology, regulatory, securities listing, and information services. Nasdaq offers its services worldwide.

<ul><li>Listening to sentiment alone would lead investors to believe we are 50% down on the S&amp;P 500 and we have another 50% to go.</li><li>But, this simply is not true. When benchmarking the markets recent price action by sector, this bear market, on a technical basis, has the hall marks of every market bottom since 2000.</li><li>Recollecting Howard Marks book, “Mastering the Market Cycle”, there was a particular part that was of importance.</li></ul>

Listening to sentiment alone would lead investors to believe we are 50% down on the S&amp;P 500 and we have another 50% to go.But, this simply is not true. When benchmarking the markets recent price action by sector, this bear market, on a technical basis, has the hall marks of every market bottom since 2000.Recollecting Howard Marks book, “Mastering the Market Cycle”, there was a particular part that was of importance.

<ul><li>This is certainly a macro development that will influence the direction of the markets.</li><li>Essentially, what this means is that the markets are showing “signs of breaking” from the Federal Reserves aggressive tightening cycle.</li><li>Today, we are going to be more focused on market technicals but I wanted to touch briefly on this and will go into more depth this weekend.</li></ul>

This is certainly a macro development that will influence the direction of the markets.Essentially, what this means is that the markets are showing “signs of breaking” from the Federal Reserves aggressive tightening cycle.Today, we are going to be more focused on market technicals but I wanted to touch briefly on this and will go into more depth this weekend.

Snowflake Inc. provides software solutions. The Company develops database architecture, data warehouses, query optimization, and parallelization solutions. Snowflake serves customers worldwide.

<ul><li>In my opinion, DLocal is an expensive stock. Typically when you see very expensive businesses not outperform on every metric, or at least a majority of them, you see their stock price struggle.</li><li>On a valuation perspective, DLocal finds itself priced in line with the most expensive stocks on the stock market.</li><li>The thing that makes DLocal unique is its profitability compared to many of the other software stocks as they run 35%+ EBITDA margins on a consistent basis.</li></ul>

In my opinion, DLocal is an expensive stock. Typically when you see very expensive businesses not outperform on every metric, or at least a majority of them, you see their stock price struggle.On a valuation perspective, DLocal finds itself priced in line with the most expensive stocks on the stock market.The thing that makes DLocal unique is its profitability compared to many of the other software stocks as they run 35%+ EBITDA margins on a consistent basis.