Intuit Inc. (INTU-Q)

Markets are lofty, if not exactly frothy, right now. Trading around $630, 12-month target of $717. February reporting beat on top and bottom, raised guidance. We're going into tax season, and this is where the company really makes their hay. Yield is 0.6%.

Total online payments are up 20%.

The CEO is doing a great job, but the stock is 5-8% ahead of itself. Also, he expects the market to take capital gains in January, so wait till then before buying when you see the true colours of stocks.

A play on small business which baosted 50% EPS growth in the last quarter.

QuickBooks is the major driver of growth. Management reiterated growth around a strong mid-teens. It reports next week.

They started using AI 5 years ago, and have now introduced Intuit Assist, an AI tool for customers.

Companies like this need new businesses (to become clients), but if were heading into a recession there are fewer businesses. So, this is a challenge for INTU. Over 5 years, maybe this is okay, but their PE is now at a high 40x. If want to buy, buy a small position.

She just bought Intuit. PE isn't cheap, but it has a competitive advantage because they operate in tax and accounting, areas which are more resilient in a recession if enterprise spending slows. Also, they offer better margins in their online where most of their revenues lie.

A great, long-term company, great because it is invaluable to small businesses. The chart shows a head-and-shoulders pattern.

He uses the products as do many others. It has been an amazing company with a strong main business. However it has diversified away from its main business and this does not necessarily work with any company. He hasn't researched it yet but it should be in a group of 60 to 100 quality businesses that will do well.