Update from the CIO

 

Welcome to the CIO blog

Today we reported an NTA of $3.05, up from $3.01 last week, and the stock is trading around the $2.95 level this afternoon.

The big mover last week was DocuSign, Inc. which reports slightly out of time with other US stocks. Pleasingly, it surprised on the upside against analyst expectations for its second quarter numbers, with revenue up 41% year on year, impressive new customer growth of 25%, as well as anticipating improved revenue growth for Q3. The stock rallied 22% on Friday night. As we outlined in our latest monthly, we are seeing large moves in share prices at the moment, due to macroeconomic nervousness around negative bond yields and trade war updates, and increased short term investor behaviour. At the last quarter results update from DocuSign, investors ran the other way because revenue growth just missed analyst expectations, sending the stock down 15%. This is a quality stock, as evidenced by this report, with very solid growth coming through, and we are happy holders of DocuSign.

Elsewhere, Nufarm continued its recovery, rallying 3.5%, and PagSeguro was also up 3.5%, while Reece rallied over 7% after announcing further expansion into the US with a $220m acquisition of a southern California plumbing supply wholesaler, Todd Pipe and Supply.

Have a good week.