Savvy Trades and Investments

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Agreed on WSTG. I added a decent amount yesterday. Thought it was more attractive in the $17's after the stellar Q1 report...than it was before the report in the $15's. We're overdue for a healthy 5-10% market pullback, so maybe WSTG will get even cheaper.

I'll gladly be accumulating. Because this one seems destined to crack $20 soon. And if it picks up some momo, the sky's the limit. There's just not many Nasdaq techs with strong 40% revenue growth (that should only increase further with the acquisition)...and are also covid work from home plays...available at such a bargain price. WSTG should be cranking out .50+ quarters with the new lower share count. A 20 P/E (which is extremely conservative when you look as some of the ridiculous Nasdaq valuations right now) puts the stock at $40-$50. I'll keep buying in the $17's.

WSTG def had one of the more upbeat CCs I've heard lately. They're really excited about the new acquisition. Plus it sounds like the strong Q1 momentum has carried into the first few weeks of Q2. Wonder what the comprehensive rebrand might entail? Maybe a name change?

Couple of CEO comments during the CC:

"We spent the second half of March gearing our resources to support the health and safety of our employees. All of our corporate teams are now working remotely. Though our business has not been negatively impacted by COVID-19 to date, we are continuing to diligently manage our costs and operating structure to mitigate any potential impacts down the road. With these priorities in place, we are proud to be operating at full capacity and strength as we continue our momentum into the second quarter."

"Looking to Q2 and beyond, we continue to expect that we will carry our strong momentum throughout the year and drive sustainable, profitable growth through our Lifeboat Distribution business. Even in these challenging times, from a product perspective, we will continue to deepen our presence in our core verticals, while delivering growth in newer verticals like cloud and connectivity. Across our business, we are maintaining our focus on generating double-digit organic growth in gross profit, and we expect to flow through a significant portion of that growth to adjusted EBITDA. Integrating Interwork into Lifeboat Distribution's platform in the coming quarters will allow us to make us even stronger and continuing our progress towards this goal and further advance the momentum as a sales-driven organization. In addition, we are in the process of evaluating a comprehensive rebrand for the company to better reflect the strength of the 2 companies and our shared DNA, with emerging technology brands and disruptors. We plan to have more details on this initiative soon."

Another CEO comment during the Q&A:

"Ed, this is Dale. We look at the quarter, of course, we're going month by month, but we are always taking the dollar or taking the sales into the quarter side. But we saw it end up strong, and I think a lot of that has to do with what we had built up during the quarter, and people actually transacting in a lot of the products that we sell. A lot of it was surrounding virtual desktops, everybody going remote. We don't get into the hardware game of selling laptops and things like that. But everything that's security related all the way back to the data center, and everybody was bringing those products on board. So even though we're in the middle of the channel, it was end-user demand at that time that finished the quarter strong."

Couple of comments from the VP during Q&A:

"Yes, sure. So I would say that when you look at the overall products that we carry and where we see the -- candidly, the most current success and the most, what, future-looking success, Peter, is in the security side. We do have some companies that benefited in maybe a fairly small way from a rush to be home capable. But where we see probably the most future success from the COVID impact to the economy is going to be in the security space, where it's fairly universal that end users and our partners are finding that there's a rush to kind of protect remote assets and the like. So we think that there is a couple of brands that we actually talked about in the last earnings call like Security Scorecard that we think will have excellent future upside because of the environment we feel that we're in today."

"Peter, this is Charles again. I'm excited about all the vendors we had in the quarter. I will say that we did -- joking aside, we have tried to be far more selective than we were perhaps a year ago. As we've had success with vendors, we're allocating assets to those vendors that are winning with us. But there's been a couple of brands that we picked up here in even the last 30 days that we think are going to be impactful a year out from now. And a lot of it are companies like Liqid, which is a composable architecture hardware platform. We just inked that contract here within 10 days. And we see a tremendous amount of upside in the differentiation they have in the market. So I would say Liqid is one of the ones that's actually fairly new that we're just beginning the onboarding process on. And candidly, we're -- at least on the Lifeboat side, a lot of excitement on some of the key security brands that we'll be moving over from Interwork."

Here's a link to the CC transcript:

https://finance.yahoo.com/news/edited-transcript-wstg-earnings-conference-221505772.html