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We have been generating a lot of content in recent months and sometimes it can get overwhelming for our readers and at times overwhelming for us as well. The upside comes from the constant idea generation this process creates and I am thankful that the process surfaced two ideas for our mid-month update that were difficult to choose from. If you are a value focused investor the Harley-Davidson (HOG) idea we discussed on account of the company’s buyback earlier this week would appeal to you. If you prefer to focus on growth companies, the Nutanix (NTNX) idea we discussed earlier this month probably holds more appeal.
After much deliberation, I decided to do a deeper dive into Nutanix for this mid-month update. The upside with this idea is likely higher but it will also entail all the volatility that comes with investing in high growth companies, especially when the market is at an all time high following a tech fueled rally.
I’ve seen companies go through a transformation and come out stronger on the other side. The interim period while the transformation is happening is painful and the stock of such companies is usually punished as investors lose patience waiting for the company to cross the abyss of pain.