Out Fox The $treet

Shopify recently hit a double top around $175. Adobe Systems entered the sector with the purchase of Magento to compete for the e-commerce platform of large brands. The alarming rate of sales deceleration is a major red flag for an expensive stock trading at a forward P/S multiple of 10x. One of the ramifications of a massive market valuation is that competitors want a piece of the action.   Shopify   ( SHOP ) faces this exact scenario as investors rewarded the company with P/S multiple of 10x '19 revenue estimates. Read the full article for more details.  Disclosure: No position mentioned. Please review the disclaimer page for more details.   

Last week, Adobe Systems (NASDAQ: ADBE ) reported earnings that easily surpassed estimates, sending the stock to new highs . So why are insiders selling shares at alarming rates while the CTO is exiting stage left? The company is in the middle of a dramatic shift from graphic designed package software to cloud based software as a service (SaaS). The transition from licensed software to subscription services via Creative Cloud for popular more » Disclosure: Long AAPL. Please review the disclaimer page for more details. 

Our philosophy isn't to pick stocks based on ones potential for a buyout, but this theStreet.com report caught our attention. Harry Rady of Rady Asset Management owned biotech company Cephalon (CEPH) that recently got a buyout offer from Valient International (VRX). Since Stone Fox Capital also owned CEPH in our Opportunistic folios it was intriguing to see what else he picks, since we might have similar investment styles. Looking over his list we actually already own one of his top picks in Savient Pharma (SVNT). He also lists Activision Blizzard (ATVI) and NuVasive (NUVA) that have been on our radar. Might be time to double up research on these picks. Rady sees 100% gains in both SVNT and NUVA and interesting that they are both in the medical/health sector like CEPH. SVNT has been a long term holding that we've ridden to the $20s only to see it crash back below $10 when the sale of the company failed. With the new management team in place, they appear to be the stronges...