Palo Alto Networks (PANW)

It's grown into an extreme valuation of 135x EBITDA. You hardly see that in the market.

Look for the continued move away from hardware to software and the cloud. Also, they must beat revenue to accelerate the strong momentum of the past 8 weeks. It's overbought this year, but it can grow into an extreme valuation in coming years. Owning this means accepting volatility. Don't be surprised with a pullback.

It makes sense in terms of global unrest and cybersecurity concerns.

Gets the nod as the general store of cybersecurity.

Took profits. A tactical move to raise a bit of cash for September/October.

Was down 5% last week, but popped today with the rest of the market. Still, wait on this.

Runway is OK. His 12-month price target is $384, so about another $30-35 to get there. Beneficiary of the CRWD fiasco. Like the general store for cybersecurity for large-, medium-, and small-caps. Caters to everyone.

After the bell, they reported top and bottom line beats with positive guidance.

Was upgraded today. They report next week and he wants to hear what they say about spending; we don't need to hear spending fatigue again.

Really great run till beginning of this year, sideways since then. Double top around $350, tested pretty significant resistance, started to roll down. 

Support around $275-300. $300 is a big round number; often if you see those get breached it can have a significant impact on investor psychology. People also use big round numbers for stop losses, triggering selling. So keep an eye on that.

The potential to sell CRWD and buy its peers is huge. CRWD is expensive at 78x forward PE. He owns PANW instead trades at 58x. 

Is up 21% in Q2. Defense companies are spending more on cybersecurity, which benefits this.

EPS growth is up 19%, revenues 15% in the last quarter. Innovation is key in this sector and PAWN is a rapid innovator.