I’d never heard of this company before. Thanks for the engaging and insightful write up. I love hearing about these types of companies that the market is ignoring (for now).
I don't mean to sound critical; it's hard to convey tone via text, but (so here comes the critique lol):
Bennett sold $2.5M of stock ~ $20 a few weeks before the Q3 earnings report following which the stock slid to its current level of ~ $16. I know, insiders sell for many reasons. And the sale was made pursuant to a 10b-5 plan. But as we all know, 10b-5s are a fig leaf for informed insider selling. I'm lazy, and insider selling like this is the lazy investor's first go-to screen.
I'm honestly more tempted by DDOG despite its utterly absurd valuation on the thesis that growth at any price investors will buy sexy high growth market leaders the minute that growth stocks show a pulse and long before more valuation sensitive growth investors scrape the bottom of the barrel for orphaned IPOs like ESME.
Please remember going forward that the comment section is to be used only for unqualified praise, not any form of critique or disagreement.
I find I'm a lot less interested in insider selling than most, including many investors I really respect. So maybe that's something I need to reorient on my end, and something worth considering here. And, yes, the 10b-5 plans are ridiculously easy to game.
There are going to be some *huge* winners in growth names at these levels. Probably not quite AMZN in 2002 type, but in 2025 there will be definitely be some big companies whose stock dropped 70-80% in '21 and '22 and then rose 250% or 350% from '23 to '25.
That said, I've struggled to really identify ones that I find compelling, and I'm still a bit cautious about the market as a whole. In that sense, I like a stronger story that's lower-risk/lower-reward (to be clear, by the standards of the group) rather than trying to swing for the fences and risk getting wiped because the quarter missed.
I see ESMT this way, but in this space at this time there is plenty of room for reasonable disagreement. Critique away!
I’d never heard of this company before. Thanks for the engaging and insightful write up. I love hearing about these types of companies that the market is ignoring (for now).
I don't mean to sound critical; it's hard to convey tone via text, but (so here comes the critique lol):
Bennett sold $2.5M of stock ~ $20 a few weeks before the Q3 earnings report following which the stock slid to its current level of ~ $16. I know, insiders sell for many reasons. And the sale was made pursuant to a 10b-5 plan. But as we all know, 10b-5s are a fig leaf for informed insider selling. I'm lazy, and insider selling like this is the lazy investor's first go-to screen.
I'm honestly more tempted by DDOG despite its utterly absurd valuation on the thesis that growth at any price investors will buy sexy high growth market leaders the minute that growth stocks show a pulse and long before more valuation sensitive growth investors scrape the bottom of the barrel for orphaned IPOs like ESME.
Please remember going forward that the comment section is to be used only for unqualified praise, not any form of critique or disagreement.
I find I'm a lot less interested in insider selling than most, including many investors I really respect. So maybe that's something I need to reorient on my end, and something worth considering here. And, yes, the 10b-5 plans are ridiculously easy to game.
There are going to be some *huge* winners in growth names at these levels. Probably not quite AMZN in 2002 type, but in 2025 there will be definitely be some big companies whose stock dropped 70-80% in '21 and '22 and then rose 250% or 350% from '23 to '25.
That said, I've struggled to really identify ones that I find compelling, and I'm still a bit cautious about the market as a whole. In that sense, I like a stronger story that's lower-risk/lower-reward (to be clear, by the standards of the group) rather than trying to swing for the fences and risk getting wiped because the quarter missed.
I see ESMT this way, but in this space at this time there is plenty of room for reasonable disagreement. Critique away!