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Market Updates

Video: Our Stock Picking Strategy

Written by

Beth Kindig

Founder, CEO and Lead Technology Analyst

Published: July 2, 2020

Last Updated: July 2, 2020

About a week ago, Dan Shvartsman from Seeking Alpha interviewed Knox Ridley and I about the Zoom call we made last Fall, the trade made In January in the low-$60s, and the subsequent trades made in March in the low $100s and mid-$100s on our premium site. We discuss whether the company’s valuation matters now, and how our research site determines if we should hold on or add to the position amidst the rally.

We also discuss the hard questions about Zoom, including the security issues the company faced in April and why removing friction from video conferencing is what led to my high conviction prior to the coronavirus.

The interview touches on the cloud software market as a whole, where I discuss why I’m cautious on Fastly for its edge computing product despite the stock price being neck-to-neck with Zoom Video. I also expand on my strategy for analyzing tech stocks, including why I lead with product first, as well as understanding early adopters and user behavior.

Beth Kindig, founder and lead tech analyst of I/O Fund

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Knox explains his technical strategy regarding Zoom and the importance of letting your winners run. He also discusses other topics, including the effects of the coronavirus, the cloud sector, and also touches on Datadog.

Knox’s strategy is to open trades on breakouts, while maintaining a very tight stop loss. He sets up a 5% to 10% risk stop loss, but does not put trailing stop losses on winning stocks.

Watch the full video here:

About the author

Beth Kindig

Beth Kindig

Profile

Beth Kindig is the Founder, CEO and Lead Technology Analyst at I/O Fund, with more than 15 years of experience covering private and public technology companies. Known for her early Nvidia research beginning in 2018 and bold, high-conviction calls on emerging technology trends, Beth also manages I/O Fund's audited technology portfolio, which has returned 326% since May 2020, or 29.2% annualized. She is a regular guest on Fox Business and Bloomberg and has appeared on Real Vision, CNBC, Yahoo Finance, BBC, MarketWatch, Forbes, and more.