Bill Baruch and Blue Line Capital are Crowdstrike shareholders. He joined the CNBC Halftime Report to discuss how he is managing the position amid Friday’s disaster. 

Transcript:

Companies and logistics companies, airlines have been grounded widespread impact right now we continue to look at this situation and its impact on the market that mentioned markets are lower across the board. Right now, we do have some good news about this quote unquote glitch we’re hearing from CrowdStrike. Today, they say it was not a cyber attack. Again, they say it was not a cyber attack, and they say they had issued a fix. So we’re waiting to see the impact of that fix, and how it’s going to work out right now we’re looking at shares of CrowdStrike, down more than 9%. But keep in mind in the pre market the shares, they were down almost as much as 20%. So incense, a rebound when it comes to CrowdStrike. Right now, we wouldn’t go to halftime committee member, Bill Baruch who owns CrowdStrike. And he’s making some moves bill, good afternoon, what’s going on?
The situation is a disaster. Absolutely. And but I do appreciate the transparency of the CEO getting out there talking to Kramer this morning, as well as other networks. And I think that’s important to speak and be transparent about the event. Is this the last time we’re going to see it within the space? Probably not, I think we’re going to see something like this happen down the road, maybe another company doesn’t have to be CrowdStrike. So yeah, it’s a disaster. And there’s going to be potentially legal issues and claims that come from it. But me as a portfolio manager and trader, the way I look at things, clients, clients come to me to be in position advantageous ly in the market. So new cash that’s been coming in over the last couple of months. And, you know, I’ve been sort of very advantageous ly looking at certain sectors in certain names that we own CrowdStrike was one that we had not added to new money. And for clients that have brought new monies or new accounts, I’m using this opportunity here today, to get that up to allocation in our stock bucket. It’s now just outside the top 10 Given that it’s fallen back here today, but we own it with about a two and a half percent allocation in our stock bucket. So I plan on continuing to allocate to that name here today. And looking at it as an opportunity. You know, with that said to 70 to 75 is a big level, I wouldn’t be too scared. If it gets below there, we could see another event that follows a news wise over the next week. But I’m watching that as a technical level of support that it responded to the overnight trading to. So
Bill, again, you’re saying you you’re going to add this for your clients right now looking at as a buying opportunity, very similar to what we’re hearing from Rosenblatt today on CrowdStrike, saying in part, the global tech outage is creating a compelling buying opportunity for CrowdStrike. It’s CrowdStrike investors, saying it’s a chance to get a leading cybersecurity company on a discount. I do want to ask you though, are you concerned that after this incident, there may be some type of government intervention? And perhaps there might be something that leads to the business that CrowdStrike has been dispersed amongst some other companies?
I don’t I don’t want to start to jump to conclusions on that. I don’t think that’s going to be the case. I think this one incident, I think they’re going to, you know, there’s going to be potentially those legal issues. But what I’m taking from here is look how widespread their reach is. So you know, on one hand, yeah, this is a disaster. On the other hand, I mean, they go big and this company is as you mentioned, with the big government intervention, I don’t think that’s going to be the case. But when we look at the trajectory of ARR reoccurring revenues here, you know, I think that this is something here that highlights why they had such a trajectory doesn’t change the bullish case. And if anything, you know, I’ve been talking to some people in the space that I’ve that own the name as well. And you know, one thing that everybody had conclusion, this could cause for more spending, I don’t think we’re going to see less spending and cybersecurity, we could see more spending in the aftermath. So I think again, this is a buying opportunity every single day that I go home and don’t sell the names and portfolios that we currently have. I’m essentially reviving them the next day. I look at this as an opportunity again for fresh monies that have come in that are not up to allocation. And I’ve been waiting for that if we’ve been a little negative the broader market over the last since that CPI run up so moving cautiously using this pullback to pick out names we want to own and just absolutely CrowdStrike on top of our list here today.
Alright Bill Baruch saying this is a buying opportunity buying shares the CrowdStrike again, shares are down 9% Right now, they were down more than 20% at one point in the pre market bill. Bruce, thank you very much. I want to turn to all of you. I know there’s some stuff