Sold to close TEAM
Sold 400 shares of TEAM at $27.87. This closes the position originally entered on 3/3/16 at $23.13. Total return less commission was $1,880.10. Return per share after commission was $4.70.
This is the last piece of a larger position I had established in Q1. I like Atlassian (TEAM), because they have strong growth, a low cost sales model and they’re cash-flow positive, which is a lot more than can be said for most young cloud software providers.
But this is still a very young company (IPO’ed on 12/10/15), and I am not comfortable that the historic sales growth will be sustained in the upcoming quarterly earnings call (8/4/2016). Today offered the opportunity to get out with a nice gain, so I took it. The other aspect worth noting is that today the stock exceeded its IPO closing level for the fist time since early January. I think this might bring out additional sellers.