#23: F5 Networks' Transformation, Or What Makes A Compelling Growth (Or Value?) Pitch

We flip the script. Daniel pitches Akram on a new idea - f5 Networks - and Akram plays the role of portfolio manager, hearing out and testing the thesis. While Daniel might hope you like the idea itself, this episode should be a little more educational, as we break down what makes it a good or not-so good pitch, what's missing, and what could go into the thesis next. It also highlights a lot of the challenges in both growth and value investing.We do get into other ideas, including Dropbox, and into the state of the market and whether the Alteryx report is a warning sign.Topics Covered3:30 minute mark - What brought us to f5?6:30 - The long case for F510:30 - How the ADC market used to size up 7:0013:45 – The inflection point for f516:00 – What is the future of the ADC21:00 – What is the competition24:30 The nature of service revenues28:30 – What is it exactly that f5 does here33:00 – Revisiting value and what does a low multiple mean, and the Alteryx report39:00 – When the numbers aren’t enough42:45 – The research process47:30 – The limits of value investing49:30 – Dropbox as another example55:30 – Growth vs. value, or story vs. numbers59:30 – Studying Tesla1:04:30 – Alteryx – exception or warning?1:10:45 – The hunt for the coming inflection1:15:30 – Covid-19 Bull market geniuses and the market climate1:22:30 – IPOs vs. SPACs and what that says about where we areReading materials:Full pitch on Seeking Alpha: https://seekingalpha.com/article/4369321 What Makes Stocks Go Up: https://dubra.substack.com/p/the-anatomy-of-stocks-that-go-upLife Magazine - "New Kid On The Street" (scroll to 62a):  https://books.google.es/books?id=bU8EAAAAMBAJ&printsec=frontcover&hl=es&source=gbs_ge_summary_r&cad=0#v=onepage&q&f=falseDropbox: The First Dead Decacorn - https://alexdanco.com/2015/08/24/dropbox-the-first-dead-decacorn/