Stock picker @JohnHughman & I discuss:
Where the markets are heading after yesterday's interest rate hikes. Start
How to invest in fixed Income. 08:00
Tech trends & stock ideas. 20:00
Disclaimer: No conflicts. As mentioned on video I own Eleco shares
Hi BnB
Do you have any tech/GARP stocks &/or fixed income plays which you consider to be BUYS at current levels?
Yes I do Rusty. I disclosed my position in the video - ie that I own Eleco. Have done for about 7 years now
I don't think these type of video or podcast investing discussions want "filtering out". Its information that we can accept, or ignore and if you don't like particular themes or commentators don't play them.
Why not suggest it to the Stocko team? I think some of them are quite interesting and useful. Maybe there could a separate section for them?
Lots of Stockopedia videos are on youtube as well.
Do you have any tech/GARP stocks &/or fixed income plays which you consider to be BUYS at current levels?
Hi Paul. Thanks for responding. I had a few issues with your video as you probably guessed. My first issue with the tech portion of your video was that it was devoted 80% to FAANGM when those are stocks that move more with the S&P500 than under their own steam, and which, with the exception of MSFT aren't really pure tech stocks anyway, being levered to advertising and consumer trends more than software/hardware. They are also the best researched and discussed companies on the planet from which the output is readily available all over the internet. What are you adding to the discussion?
On a more positive note, you did mention a couple of companies I admire and own, Adobe and Autodesk, but quickly dismissed them as too expensive. If UK investors think they can buy a "category killing" company at GARP/value prices then they have another think coming. These software names sell monopolistic products that are deeply embedded in their customers' processes such that any pullback in spending is deeply detrimental to their customers' own futures, all while generating gross/net margins of 90%/35%. Wouldn't it have been more educational to have devoted some time to these companies and the justification for their valuations. You could have discussed Intuit, ServiceNow or one of Synopsys/Cadence Design Systems in much the same vein. Now that would have been enlightening to many.
Indulging your GARP-y desires, I could highlight a UK software pick, Instem plc, on an EV/EBIT of only 12x for FY23 and FCF yield of 6x for double digit revenue growth and good operating leverage, well embedded in a non-cyclical segment (pharma). But Adobe it ain't.
You're in luck BnB. I interviewed Stephen Yiu yesterday (video will be published here tomorrow pm) & he talked about Autodesk, Veeva, Nvidia, ASML Holdings & Lam Research.
Watch this space mate.
He talked about Autodesk, Veeva, Nvidia, ASML Holdings & Lam Research
I look forward to his thoughts. I have held all of those at some point and most of them today. VEEV is another great software name with a powerful moat in a lucrative and vibrant niche. I’m a big fan.
I’m meeting my bank’s tech analyst shortly and he is strongly negative on NVDA and ASML purely on valuation grounds. I have to agree I can’t make sense of NVDA’s valuation at all while I can live with ASML’s less punchy price owing to its unique market position - which I guess is the case for NVDA as well, but at a far more extreme valuation.
Ignore epo001 he must have got up on the wrong side of the bed this morning . Your videos are always very useful Paul and it’s great to see them on here rather than having to search on YouTube.
Yes I will be interested in that video, also. I have very small holdings, in this area, looking to increase my exposure. One I do hold, which still looks reasonable value despite it's recent surge is Axcelis Technologies (NSQ:ACLS), 4Q out tomorrow.
Stephen reckons Nvidia is Blue Whale's #1 stockpick for the next 5 years
It’s a big bet on AI as far as I can tell. I look forward to his thoughts.
One I do hold, which still looks reasonable value despite it's recent surge is Axcelis Technologies (NSQ:ACLS), 4Q out tomorrow.
Axcellis looks well placed for US fab growth but SP is no better than fair after the run-up. That won’t necessarily stop it surging further though!
Looks a good stock idea Rusty. ACLS should also do well from the US' plans to reshore all things semi-related - ie new chips plants for Intel, TSMC, etc
I am a big fan of the "heads up" that these are being posted - it saves me having to search directly on Vox Markets each week. I can simply see what they are and decide (or not) what I need to link on my phone so I can listen to them as I travel.
Keep up the good work Paul.
I think you might be slightly surprised too wrt his thoughts on Autodesk
I do see more chopping and changing of the core holdings than I’d expect in a high conviction fund. Elements of the top 10 seem to change regularly.
One of the points Stephen has made about his fund in response to accusations that it is purely a tech fund is that the constituent software businesses really belong in the sectors which they serve. So Autodesk is an industrial/construction company, Veeva is a pharmaceutical business, Adobe is a media and design company etc. I think this point has merit, as performance, if not valuation multiple, tends to mirror the underlying sector being addressed. It would be straightforward to build a portfolio of software companies that cover the whole gamut of investment sector categories and enjoy the secular trend towards automation across all industries. Indeed, a good slice of my portfolio somewhat resembles that model, since, after 35 years working in IT, I’ve never seen the industry take a backwards step.
