Plug Pullers of the World – Give’r a Tug! (AAPF)

There comes a time when you just have to disconnect.

That was our feeling when the live feed of riots and mayhem began streaming over the office monitors.

It didn’t take long to understand that on top of the human losses accumulating, a great deal of private property was also headed toward sacrificial immolation.

The Great Wait

And we understood, too, that unless and until insurance adjusters could get to the streets, property owners large and small would remain up a tree without a fish.

So, too, all those related industries and businesses on whom property owners rely.

And that brought us to one company whose shares happen to be grossly overvalued – the result of

1. a tainted love between investors and all things internet/tech related,
2. a powerful market-wide short squeeze that transpired over the last six weeks, and
3. a speculative scramble on the part of retail investors that we believe has now run its course.

Of course, the market didn’t pay immediate attention to a demonic Chinese bat-plague or the economy-strangling lockdowns that followed.

Nor should we expect it to react directly to the loot-fest charring of the guts of America’s cities, apparently.

But it can’t ignore those pyres forever.

And it’s our guess that within days we’ll see a reaction.

A new bout of selling will begin.

And along with it, we’ll very likely see the gutting of property management software maker AppFolio Inc. (NASDAQ:APPF), a high flyer that posts the following key fundamentals –

With kind regards,

Hugh L. O’Haynew

Follow @HughLOHaynew