February 24, 2022
Cloudflare (NET) reported Q4 results yesterday that surpassed expectations. Revenue was up 54% to $193.6 million while adjusted EPS came in at $0.01. As compared to some other software stocks that have beat expectations, Cloudflare reinvested the surplus cash in growth initiatives, so it didn’t flow to the bottom line.
As I noted in the previous issue, the Undiscovered Portfolio is tactical in nature, meaning that we’ll be buying and selling funds on a fairly regular basis, as market conditions change.
Today, I’m selling three positions and buying three more.
Sell all of your holdings in the following ETFs:
ProShares K-1 Free Crude Oil Strategy (OILK)
Invesco S&P SmallCap Quality (XSHQ)
SPDR Global Dow (DGT)
- Maintain the 10% position in the following ETF:
ProShares Short MSCI Emerging Markets (EUM)
Purchase the following ETFs in these percentage allocations:
Invesco Dow Jones Industrial Average Dividend ETF (DJD): 40%
ALPS International Sector Dividend Dogs ETF (IDOG): 30%
Direxion Daily S&P 500 Bear 1X Shares (SPDN): 20%
I will follow up later today with an explanation of what each fund is and why we’re trading into these. For the moment, I wanted to alert you to these trades as soon as possible.