Altium to release results on the 23rd of August. 

I am expecting a very postitive update and a turn around in their business. 

I am still hoping they eventually drop below $30, but that may be wishful thinking without a market pull back. 

Always a great company to keep an eye on. 

It's interesting that Altium has rejected this offer. Puts them on a huge 40x multiple. Its a great business which I started buying under $1 and wish I had kept my original holding as it would have been worth a small fortune today. These are the traps of selling tech stocks due to over valuation. 

The business thesis for ALU remains with management very bulish on where the value of the business stands. They have the most to benifit from a takeover so to me it says a lot when they are rejecting a great offer and wanting to build the business further. Will be a buyer under $30

Half year FY 19 was an amazing result. If they achieve their USD 500M target by 2025 with 40% EBITDA then this is going to $60+. I sold a third of my portfolio today but will add to my position if there is a market sell down. The rest I have held now for over 5 years and  have no intention of selling. There is a huge future for ALU if they can get market dominance, this company has the potential to be multiples of its current size. Not cheap on todays numbers, but an outstanding business with incredible management. 

Having held Altium for a few years since $0.86 I recently brought more on this pull back. Whilst it looks expensive on todays metrics, it looks cheap on a long term basis out to 2025. In their recent presentation they have a target to grow lisences from around 38k to 100k. In dollar terms this should equate to revenue in the vacinity of USD500m to USD600m. This could be conservative now that they are getting traction in the higher end PCB space having recently taken a major customer off Mentor Graphics. In profit terms if their strategy comes off it should equate to profits of around AUD 250m and a share price 3 times higher than todays if you assume they can maintain a high multiple. 

I have confidence in Altium achieving their long term 2025 target as they significantly beat their 100m target, achieving 110m and are looking to achieve around 220m by 2020 extrapolating current growth. Management are excepetional and whilst these growth figures look ambitious they always manage to beat them. 

Altium have also made strategic acquisitions focused on increasing their moat rather than just buying earnings, which sets them apart from their competition.

I am expecting very similar earnings growth to COH over the last 5 years and a similar multiple. COH has been a 4 bagger in that time and ALU could do the same. Very different businesses but both extremely high quality with exceptional management.