I’ve had a position a while ago because the technical thesis didn’t play out.

But now it’s back on the radar and honestly it looks a lot more interesting this time around. It is finally starting to break out after almost a full year of going sideways. That said, this is still a volatile name, so it’s important to size positions accordingly.

If you go back and look at the price action, there’s a pretty clear pattern that keeps repeating. It tends to spend months consolidating and building a base, then breaks out and moves quickly just to repeat the process again. The key thing to note is that the actual breakout phases are usually short and sharp.

The Setup:

• Breakout of a year-long consolidation

• Operating leverage is kicking in leading to revenue acceleration

• Dave’s business benefits from a harder macro setup and rising inflation

• Steady compounder growing every year and every quarter