Hello Folks,

For those who don't know let's begin by talking about what Snowflake actually does to make money.

Snowflake Inc. provides a cloud-based data platform for various organizations in the United States and internationally.

Its platform offers Data Cloud, which enables customers to consolidate data into a single source of truth to drive meaningful business insights, build data-driven applications, and share data and data products.

While this is not necessarily a company that I would normally recommend, that is because it is not cheap by conventional metrics and it also is not small. However, it is high growth and very high quality. Even at roughly 62 billion I expect this to eventually be another trillion dollar tech behemoth. Nevertheless, that does not mean I will hold to that point although I might. There are good reasons to take profits or protect your portfolio even with stock in great companies.

In my view the stock is a good value anywhere below $300 per share. Currently at $189 per share it is a hell of a bargain. I have been accumulating shares below $200 for almost two years now. I strongly recommend selling puts slightly below the market on this stock as it's options are highly liquid and even fairly short term puts below the market can provide 5 to 10% premiums depending on volatility.

All demographics are favorable for this company. Crypto, Big data and AI are exponentially increasing in terms of the volume of data storage and processing power required. With Snowflake organizations can access their database through the cloud on a volume basis. Management has grew the company at incredible organic rates in a few short years prior to the IPO. Since then the stock has been a disappointment to IPO investors, selling over 50% below it's IPO price since then in September of 2020.

Guess what? This is actually the typical pattern for great new companies after an IPO. The shares will drop, sometimes quite dramatically, then form a long-term base until sufficient stock is accumulated by strong holders for a large sustained mark-up. In this case the stock has proven it's merit actually by holding up rather well considering the overall bear market. A strong break out above $200 would be welcome, but we should not be discouraged if it returns to lower levels and lingers there as the longer a stock in under accumulation, the more upside we tend to get during the mark-up phase.

For the more quantitative minded out there let me add these notes:

1) Snowflake customers can expect an ROI of 612% and total benefits of more than $21 million over three years, according to Forrester’s Total Economic Impact™ Study.

2) Together, Snowflake customers have more than 2.6 B of data queries on the Data Cloud, with more than 515 million data workloads that run each day.

3) Thousands of organizations around the globe and across dozens of industries are using Snowflake’s Data Cloud to advance their businesses. (Their customer retention and upsell rates are extraordinary.)

While reporting negative earnings recently, the company is poised to post profits in the upcoming quarterly report. Also it is already generating positive cash flows and if one factors in growth then there is a value argument to be made for the stock. While I do not view actual intrinsic value in that way, as I have said I believe the stock is a good value up $300 considering the long-term value of the company. More importantly perhaps is also the value of it's technology and intellectual property.

Ultimately, I love this company. I like the stock. I like the price, I really like it below $200. Up or down, I will continue to scale in by selling puts and I will be setting my selling price far above $300 per share. Of course, it never pays to never change my view on a stock if a really compelling reason arises. However, as many great investors have said before; to paraphrase, it is not thinking that makes the big money but the sitting and waiting.

(NOTE: This is NOT a recommendation to buy or sell any security as each individual should consider their circumstances and consult a professional advisor. This information is provided for educational and/or entertainment purposes only. Thank-you.)