Taking advantage of volatility
Recent market volatility has presented some attractive opportunities to top up on some of our higher conviction holdings. One such opportunity has been cloud solutions provider Rhipe (ASX:RHP). Rhipe is on a stellar growth trajectory, driven by the powerful thematic of a shift to cloud computing. The company is rapidly growing recurring revenue and is taking steps to build on its already sizeable addressable market. We believe Rhipe is likely to more than double its earnings in at least each of the next couple of years. Management kicked a big strategic goal earlier this year when Rhipe was appointed to the Microsoft Cloud Solution Provider Program in several countries across Southeast Asia. While the Asian strategy will require some investment, in our view, the long term potential is well worth the money. We were heartened to see the Managing Director, Chairman and another Director all dipping into the market in September to top up their holdings. We would not be surprised to see Rhipe snapped up by an acquirer in the not-too-distant future.
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