CS Disco (LAW) Remains at Buy
Shares of CS Disco (LAW) are selling off today on what’s been a generally weak day for growth stocks (though getting better as we move into the early afternoon). The catalyst here is a secondary offering by selling shareholders (non-dilutive) that has not priced yet (probably tonight, or tomorrow). This is to be expected. LAW is a recent IPO and early-investors often reduce stakes – that’s part of why companies go public, to provide that liquidity.
Nobody likes to see a stock that they own fall, but we got into this one knowing it would be a bumpy ride. That’s part of why we started with a half-sized position. I’m not officially filling the second half yet – we’ll see where the pricing comes in and how the stock reacts – but I am keeping LAW at buy now. For those building positions this looks like a good time to add more shares in an attractive long-term growth story. BUY