There is an ETF which has a list of holdings which are like a who’s who of the shares in the Quentinvest table of benchmark stocks. This ETF is giving a strong buy signal, which is a good omen for the ETF but also for the shares in the QV table and I will be looking at many of them in future alerts.
They were chosen for their outstanding fundamentals and the correction that took place in 2022 was much more about valuations than about the fundamentals intrinsic to the companies, which in many cases look as attractive as ever.
Table of Contents
This is an excellent chart. We have a valid Coppock buy signal and a golden cross on the 3m candlestick moving averages. This is only the second such buy signal in five years. Two shares which are not in the OGIG portfolio are Nvidia and Tesla, maybe they do not qualify as Internet stocks.
OGIG’s Top 15 are Classic Quentinvest
This is a very sexy list of stocks. The only one not to be to in the QV table is Confluent and they have a fabulous chart and are classic 3G. Listen to this from the latest quarterly earnings report.
Total revenue grew 38pc to $174m. Confluent Cloud revenue grew 89pc to $74m, and non-GAAP operating margin improved 18 percentage points. These results are a testament to the mission-critical nature of our platform, our strong TCO [total cost of ownership] value proposition and the solid execution of our team despite a volatile macroeconomic environment. Over the last year, Confluent has continued to show very strong gross retention, even through a substantial change in the economic environment, including abrupt changes in interest rates, an economic slowdown, a significant drop in funding for private tech companies, and the recent challenges in banking.
Q1 2023, 3 May 2023
Confluent Looks Super Hot!
After a long discussion of why Confluent’s products are so sticky co-founder and CEO, Jay Kreps, concluded:
The combination of these savings across infrastructure and operations allows us to offer our service at a price point that makes our product not just better, but also cheaper. We think that’s a winning combination, especially in times like these.
Q1 2023, 3 May 2023
Finally Kreps looks at one customer to highlight why Confluent has such an opportunity.
Confluent powers thousands of this customer’s applications across hundreds of teams, spanning digital, fraud, payments, analytics and more. The bank is now going all in on the cloud, undertaking a massive cloud migration to operate more efficiently and introduce new innovation to their customers faster. To accelerate their cloud migration, they closed a seven-figure Confluent Cloud deal to connect their data from on-premise environments to the cloud. Despite the turmoil in the banking industry, this customer accelerated their cloud transformation with Confluent, another example of the many use cases that make data streaming a critical tool for modern organizations, even amid macro uncertainty.
We are very excited about the opportunity for similar expansion in other customers as the financial services sector moves to the cloud. In closing, the significant product and cost advantages of our platform put us in a strong position to tap into the hundreds of thousands of users of Kafka, with a product that is more than 10 times better and meaningfully cheaper than open source. These dynamics put us in an enviable position as the leader of a $60bn market opportunity.
Q1 2023, 3 May 2023
The Chart Ticks All the Bullish Boxes
We have a Coppock buy signal, a share which has mostly known only bear market conditions and a breakout from a substantial base. The shares look a strong buy.
The group’s business is subscription based and super-sexy.
Confluent provides a new type of data infrastructure by uniting an organization’s various systems, applications, and data layers into a single, real-time central nervous system.
Seeking Alpha, 20 December 2022
The company is going to have an Investor Day on 13 June which is unlikely to hurt the share price.
Strategy – Buy Both These Shares
I have been waiting for OGIG to give a strong buy signal and finally we have it. This is excellent news for US shares altogether. It seems there is no stopping this US bull market and I suspect there could be fireworks ahead.
Confluent looks a great stock too – central nervous system of the modern technology stock; how cool is that and with those results they are walking the talk, an expression I first heard from Body Shop chairman, Gordon Roddick at an early stage in the meteoric rise of those shares.
There are many ways to play this nascent bull market. You could build a portfolio of shares which are driving the technology revolution; you could do the same with ETFs, you could focus on leveraged ETFs like QQQ3 or you could find one share that really sets the adrenaline going and buy them.
What I would urge on you is – do something. Opportunities like this don’t come along every day.
Share Recommendations
ALPS O’Leary Global Internet Giants. OGIG. Buy @ $32
Confluent. CFLT. Buy @ $36.75
QV Alert – Climb Global Solutions (CLMB)
The Living Portfolio – Manage Your Shareholdings For Maximum Results
Quentinvest Alert – Vertiv Holdings
