Palo Alto Networks (PANW)

Crowdstrike is in security business, endpoint protection. New module expands its total addressable market. A favourite of Gartner Research, calling it a "visionary vendor" second only to MSFT. Trading at a bit of a discount. May be able to buy in low $120s. Price target of $160.30. Don't buy and hold; you must monitor it closely. Also likes PANW and CYBR, with PANW being a long-term hold.

He loves the cyber-security theme. Earnings growth is projected in the 20-25% range. A high-quality name in the space, but trading at 20-40 times earnings. Be cautious.

Cyberspace sector? This is a long-term growth area, because Cyber Security is not going to get better, it is just going to get worse. This is a name that is very pure in this particular space. Trades at about 44X earnings on a forward basis with a 23% long-term growth rate. Not really cheap, but you are paying about 1.9X PEG in an area that is very, very important.

They have grown 50% a year. Last year they had an execution issue and dropped their guidance. He found they were growing too aggressively and it was irritating customers. People didn’t understand this was the problem. Over the last two quarters they have been beating expectations. They are at 20% free cash flow growth now. (Analysts’ target: $165.00).

Has owned this in the past. In technology, semiconductors are absolutely leading the way, or you could hold the XSD ETF which holds the basket of semiconductors. He also likes Cloud. Security has been difficult recently and has been underperforming. Given the break in the stock, he would avoid it.

(A Top Pick Oct 29/15. Up 2.18%.) Got out of this a little while ago. Longer-term, he thinks it is pretty decent. It is in the computer security business, and they are one of the highest growth companies in that space. A good long term name that he will consider entering again at some time.

Security software came under pressure in December. They were higher multiple stocks, so were a little more expensive. Feels the long-term picture for security is very, very good, but thinks that what is happening in the near term is that many of the sectors that are benefiting in this market are sectors that are a little bit more economically sensitive. The stock broke down at about $168, and is now trading at $140. He would need to see the price start to behave better, relative to the market. He would move on and look at other sectors.

Likes the name. Security is going to be a problem that is not going to disappear anytime soon in terms of corporations, governments, etc. Has owned it in the past. Volatile because it has a PE of 72-73 on a forward basis. However, it does have a 35%+ growth metric attached to it. If markets start to worry about its growth, it is going to come down, and obviously the PE is going to come down quite a bit. A higher octane type of name, but over time it will do fine.