These are summaries of the holdings of Cabot Small-Cap Confidential with links to the issues in which they were initially recommended.
Rapid7 (RPD)
Recommended March 2, 2018
Rapid7 (RPD) is a pure-play security software solutions provider. This company is growing revenue well over 20% and is expanding its portfolio of solutions to address large and rapidly growing markets.
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Arena Pharmaceutical (ARNA)
Recommended February 2, 2018
Arena Pharmaceutical (ARNA) is a promising small-cap biotech with two high-potential drug candidates, each of which could develop into a billion-dollar asset.
Instructure (INST)
Recommended January 5, 2018
Instructure (INST) is a $997 million market cap company that has developed an innovative and easy to use cloud-based learning management system (LMS) for academic and corporate customers. The stock is not a high flyer. Rather, this company is still scooting just below the radar, and trades at a big discount to most of its peers. When you value it based on growth, it’s downright cheap—but valuation isn’t why we’re buying it.
Apptio (APTI)
Recommended December 1, 2017
Apptio (APTI)
is a $895 million market cap software company that develops Technology Business Management (TBM) solutions to help information technology (IT) leaders do a better job of running their business. The easiest way to describe TBM is as an IT department’s software equivalent to finance’s ERP platform, human resources’ HRM platform and sales’ CRM platform. Apptio is likely to grow by 15% to 16% in 2017 and 2018. It isn’t growing as fast as many rapid-growth software peers, but that’s more a reflection of the reality that it sells high-priced software to a smaller number of potential buyers.
Materialise (MTLS)
Recommended November 3, 2017
Materialise (MTLS) is a Belgium-based company specializing in 3D printing software, 3D printed medical devices and on-demand 3D printing services for the industrial, medical and consumer industries. It does not manufacture 3D printers, other than one large-format proprietary model used purely for in-house printing. Its biggest end-markets are medical (especially orthopedic), industrial (especially automotive), aerospace, consumer and art & design. The company has a market cap of $713 million.
Datawatch (DWCH)
Recommended October 6, 2017
One year ago, a group of college kids were given 20 hours to figure out who would win the upcoming 2016 Presidential election, Hillary Clinton or Donald Trump. They were given 2.5 hours of instruction on how to use two data-prep platforms, IBM Watson Analytics, and another one I won’t mention (yet). They were also given a whole mess of data from numerous sources and in various formats, including PDFs, CSV files, Excel files, Access databases, web content and sentiment data from social networks. After 20 hours of analysis, their data showed how Trump could win. He only needed a relatively small group of Clinton supporters to vote for a third-party candidate. This wasn’t all that unlikely given that the data showed her base was prone to shifting their opinions of the democratic candidate. How the heck did these college kids lay out the case for a Trump’s victory when the professional forecasters got it so wrong? And how did they do it with so much disparate data, in so little time? They used a data prep platform by Datawatch (DWCH).
AxoGen (AXGN)
Recommended July 7, 2017
Health care company AxoGen (AXGN) has many of the attributes Tyler looks for. It’s relatively early in its life cycle, but not so early that there are no products and no revenue. It’s not yet profitable, but profitability should be here within two years. The product lineup is diversified enough to address a significant market, but there are more products that can be added without branching out into entirely new markets. And the company could be a nice tuck-in acquisition for a larger health care company looking to beef up its peripheral nerve repair portfolio.
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AppFolio (APPF)
Recommended June 2, 2017
AppFolio (APPF) has a cloud-based software solution tailor-made for property managers. It’s growing revenue by more than 30%, has no debt, and is on track to become profitable this year. The chart is solid. And Tyler believes the company will ultimately be sold, hopefully at a nice premium to where shares trade today.
BioTelemetry (BEAT)
Recommended May 5, 2017
BioTelemetry (BEAT) provides digital health solutions to people with chronic health issues. Its biggest market is people with heart conditions, but it is branching out to the diabetes market as well. The stock has been a strong performer, but for a short window of time, Tyler believes we can establish a position while shares are “on sale.”
Asure Software (ASUR)
Recommended March 3, 2017
Asure Software (ASUR) is a micro-cap company poised to grow on the back of strong employment trends in the U.S. and select international markets. The stock has been performing well since a transformational acquisition greatly increased its addressable market, driving a big increase in revenue growth and profitability. Managing the modern, global workforce is no small task. But this unknown company is up to the challenge, nipping at the heels of its larger competitors as it rolls out a new platform that’s both unique and powerful.
Everbridge (EVBG)
Recommended December 2, 2016
Everbridge (EVBG) is a newly public company that’s in the business of protecting people and property. Unfortunately, this is a growing market given the prevalence of natural disasters, cyber security attacks and terrorist acts. But fortunately, technology can play a role in reducing injuries, anxiety and property damage. And this company has the most advanced set of solutions on the market.
Q2 Holdings (QTWO)
Recommended April 1, 2016
This month’s investment candidate is a pure-play provider of software to the highly personalized community banking and credit union market. These small financial institutions are faced with the necessary task of updating their virtual banking software to meet the demands of increasingly mobile consumers.
LogMeIn (LOGM)
Recommended January 8, 2016
LogMeIn (LOGM), a software developer making next-generation connected solutions that link up people and electronic devices around the globe.