ZDC is another issue. Stock has been quite weak. I'm starting to think it may not work out all that well. They have no real moat and others can enter their market. But they have done well and recently raised money. What do you see for it going forward? Does it still make your favourite list of top stocks?
We still like PNG and think the acquisition makes sense and helps to power their next leg of growth. We think a lot of the weakness is more around general market volaitlity but it is an expensive company and volatility is a bit of the default 'mode' here. PNG is up 229% over the last year and up 25% over the last 3 months.
We continue to like ZDC but execution is important. The valuation looks expensive but if they execute over the next few years, it quickly becomes a more reasonable valuation in a short period of time. Similar to PNG, broad markets have not helped things a whole lot here but they have a financing behind them and are moving into the US market which should help support growth. There are alot of concerns around competition which is warranted but applies to almost every company as well so it is not really unique to ZDC or its business and it has still managed to grow amid all of the compeition.