ANSYS is cornering the market for Engineering Software

Poppy's Picks & Updates

Poppy previously recommended ANSYS, Inc.(ANSS). I had never heard of it and had no idea what they do, but most stock quote pages have a little blurb about the company. Here are the first few lines:

ANSYS, Inc. engages in the development and marketing of engineering simulation software and services. It operates through the following geographical segments: United States; Japan; Germany; South Korea; France; China; Other EMEA; and Other International. The firm's solutions include automotive; aerospace and defense; construction; energy; materials and chemical processing; autonomous engineering; and electrification. The company was founded by John A. Swanson in 1970 and is headquartered in Canonsburg, PA.
Quick takes:

• The company makes engineering software and services, which can be very specialized and expensive. That's good. Sales dollars and earnings are major drivers of stock prices.
• The company doesn't pay dividends (see the N/A below), which means investors are looking for stock price appreciation to make money on an investment.
• EPS (earnings per share) are positive, which means the company is profitable.
• According to Poppy, the company may take a while to build momentum, so if you buy it, you may expect the stock price to stay a little flat for some time.
• Other things to analyze could be the company's leadership, quarterly earnings trends, and expectations around its new products.
• Oh, and the ANSS stock chart looks fantastic. This is the ideal shape you want:
  

Since we're getting into analysis a bit more, I'd love to introduce my favorite tool for stock analysis - Wallmine.com. The screenshots from wallmine below for Ansys might make wallmine look a little overwhelming, but it's actually very approachable. If you hover over any of those terms with your mouse, a definition will appear to explain what it is. It's super great for beginners or even experts who need a reminder.

Link to Ansys on Wallmine

Trades

• Chloe bought PayPal (PYPL) and Beyond Meat (BYND). Don't be too discouraged by the losses you've taken already - you got a little unlucky. Remember, "time in the market beats timing the market." Besides, impossible burgers are delicious.
• Brenna, Lindsay, Milena, and Bryan are still sitting on their $1000 in cash.

Please remember to update the google sheet detail tab when you buy/sell something. I look at the revision history each month so I can include your trade in this newsletter. The summary tab is at the bottom of this email as a picture and the live link to it is here.