Motley Fool: Investors have eyes in the cloud
Veeva Systems (NYSE: VEEV) provides cloud solutions for life sciences companies. Its clients include some of the largest pharmaceutical and health care companies in the world, such as Merck, Johnson & Johnson, Novo Nordisk and Eli Lilly.
In recent years, consumer goods companies such as Colgate-Palmolive, Unilever and Mattel have begun using its cloud solutions.
Veeva helps clients improve their operational efficiency, especially the transition from research and development to commercial product launches.
Its platforms manage clinical, regulatory and quality control while enabling users to collaborate and work with stakeholders.
Its cloud offerings do everything from helping clients design clinical trials to aggregating vital content to streamlining patient registration to publishing regulatory submissions.
Most of Veeva Systems’ revenue comes from subscription services for its cloud offerings.
In its fiscal first quarter, revenue grew 24% year over year, while subscription revenue jumped 29% and net income rose 23%.
Veeva is an asset-light business with a strong competitive advantage in its industry because of its focus on health care and consumer goods companies.
Its stock appears undervalued at recent levels. (The Motley Fool owns shares of and recommends Veeva Systems.)
My smartest investment
My smartest investment move, believe it or not, was selling shares of Nvidia – at less than half of the stock’s recent price. I only sold half of my shares, though. At the ridiculous price-to-earnings (P/E) ratio it had at the time, I think this was the right thing to do.
I decided to sell only half after thinking about regret minimization: What would I regret more: holding and watching the position drop by half or even lower (which has happened to me on many occasions) – or selling half my position and watching the stock go up and up?
For me, the right decision was to trim the holding, as at the time Nvidia was 20% of my portfolio. Interestingly, it’s now again at 20% of my portfolio. – R.J., online
The Fool responds: This is a great story – and one some might think of as a regrettable investment move.
It was a smart move for you, though, because you thought about how much risk you were willing to take, and you managed it well.
We sometimes forget that we can always sell some of a position in a stock instead of all of it.
You evaluated the stock’s valuation and decided it was rather steep. You assessed your risk tolerance. And you made a move that still left you with a significant stake in the company.
Ask the Fool
Q: What’s an ESG score? – J.F., Bridgeport, West Virginia
A: It’s a number that describes how well a company addresses environmental, social and governance (ESG) issues.
The score reflects how well the company protects the environment; how well it serves not only shareholders but also customers, employees and suppliers; and how good it is on leadership, executive compensation, internal controls and shareholder rights – among other things.
The score considers environmental factors such as recycling, renewable energy use and emissions; governance factors like diversity in the board of directors; and social factors, like ethical supply chain sourcing, and employee pay, benefits and safety.
Multiple companies calculate and publish ESG ratings, with MSCI ESG ratings among the better known. You can look up a company’s ESG score at sites such as Finance.Yahoo.com (under “Sustainability”).
Q: Can a consumer credit counseling company help me get out of debt? – I.K., Cayce, South Carolina
A: It might, but be careful, as they’re not all equally good.
A good consumer credit counseling service can assess your financial situation, outline your options and help you develop a path out of debt. It may even be able to negotiate new payment terms with your creditors via a debt management plan.
That allows you to make payments through the counseling service, which will then pay your creditors.
If you’re intrigued, do some research before signing up with any outfit, and perhaps favor nonprofit services.
You may be able to find a certified credit counselor via the Financial Counseling Association of America (FCAA.org or (800) 260-1875) or the National Foundation for Credit Counseling (NFCC.org or (800) 388-2227).
You might look up candidates at the Better Business Bureau (BBB.org) and learn more at the Federal Trade Commission (Consumer.FTC.gov).