Guru Chase Coleman (Trades, Portfolio)Â reduced his stake in Pure Storage Inc. (PSTG, Financial)Â by 4,242,615 shares Monday.
Pure Storage was incorporated in Delaware in October 2009. The company’s mission is to change the way people build technology. The company delivers data storage that transforms business through an increase in performance and reduction in costs. Its services include Purity Operating environment, which is its flash-optimized software; FlashArray, its modular and scalable all-flash array hardware, and Pure1, its cloud-based management and support.
FlashArray is a modular all-flash storage array designed to maximize the performance and density of flash, optimize the software services that the Purity Operating Environment provides and minimize solution cost for customers. As of Jan. 31, the company had 1,300 employees.
Pure Storage has a market cap of $2.88 billion, an enterprise value of $2.28 billion, a P/B ratio of 5.07 and a quick ratio of 4.16.
Pure Storage has a Financial Strength rating of 6/10 and a 2/10 Profitability and Growth rating, according to GuruFocus. The company’s operating margin is -47.73%, ranking it lower than 95% of the 2,228 companies in the Global Data Storage industry.
Pure Storage is also traded in Germany.
According to the company’s most recent 10-K filing, Pure Storage is mostly concerned with its rapid growth in recent periods, and it may not be able to sustain or manage future growth effectively. The company has a limited operating history being founded in 2009, which makes the company's future volatile and hard to predict.
Coleman is a Williams College graduate who learned many of his investment techniques and philosophies from legendary guru Julian Robertson. Coleman worked alongside Robertson as a research analyst at Tiger Management. In 2001, Robertson gave Coleman a big opportunity. Robertson staked his protege $25 million to manage his own fund. In return Robertson would get a percentage of ownership in the firm that Coleman would later found.
On April 13, 2001, Coleman founded Tiger Global Management LLC. The firm currently owns 41 stocks with a total value of $12.44 billion.
Cheers to your investment success.
Disclosure: Author does not own any shares of this holding.
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