Alphabet Inc (GOOG)

(Top Pick Oct 17/16, Up 20%) It is in the themes of cloud and search. You really want to own this one. He has a significant tech weight because there are so many secular themes here.

All the leading techs are taking a pause. He sold his holdings at around $980. The longer-term trend on this is fantastic. Thinks we are entering into one of the periods of no new highs. However, the stock has a great long-term upside. To get back into the name, he would like to see either a break-out to new highs, or he would even Buy on a test to the trend line after we get through the September nasty period.

If a long-term investor, he would not sell this, but would Hold, and if it pulls back, add more. One of the go-to names. From a technology standpoint, it has a very dominant market position. From a search and online advertising standpoint, these are trends that are poised to continue. It is not that expensive a stock. If you back out the cash, it is trading at 17 or 18 times PE multiple.

This has one of the biggest moats the world has ever seen. Digital advertising continues to see unabated growth. They have a beautiful balance sheet, and continue to generate about $25 billion a year in free cash flow. They already have $140 a share net in cash and other investments. It is inexpensive. (Analysts’ price target is $1,050.)

(A Top Pick Feb 8/17. Up 13.43%.) A 20% grower. It is amazing that a company this size can do that. It comes from the fact that it has a large pie, and 66% of ad spending is still off-line. The runway is long for them. They also have Cloud services. The knock is that they have to get other bets spending under control, it is running at $4 billion per year.

What is the difference between GOOGL-Q and GOOG-Q? GOOGL is the one that has the voting shares. GOOG-Q is the public vehicle and the one you want to own.

He loves this one. He has it valued at $654, and is trading at a 30% overvaluation. If it ever gets back to $806.38, it would be a wonderful buy.

You need 20 years on a stock before you can assess it on a seasonal basis. Technicals are very, very positive. However, like most of the FANG stocks, has reached a trading range. Historically, many technology oriented stocks have a history of peaking around the 3^rd week of July. If you own, you probably want to take some money off the table with the idea of getting back in around the 3^rd week of October.

Revenue is about $100 billion a year. They have very little expenses. There is another $200 billion of TV advertising that will be moving into Internet advertising, and he believes this company will get at least half of that. (Analysts’ price target is $1,050.00. )

Everybody’s favourite FANG stock, and it has done well. A great company and growing. Recently reported with a beat, and yet investors still made it pull back. It hit resistance at around $1000, and may be in a consolidation period. Based on a technical perspective, he would not be investing in this right now. Wait for it to go through $1000 on strength.

A good long term hold. It is a spectacular business. They are at the forefront in terms of using artificial intelligence and big data analytics. They keep re-inventing themselves. He wishes they would pay a dividend.

(A Top Pick July 12/16. Up 31.18%.) This is her play on the Internet and digital advertising. When it got close to $1000, she took some money off the table. To buy more, she would like to see it pull back to around $900. A great company in terms of revenue growth. They grew their top line over 20% over the last 29 consecutive quarters. Regarding online advertising, she thinks it still has some growth in terms of overall corporate advertising budget, and this company will garner a large share of that.

(A Top Pick May 19/16. Up 31.1%.) He still likes this but it has been part of the small pull back in the Tech sector. If this starts to fall down to the $900 level, that would be a good entry point.

(Market Call Minute.) A fantastic franchise. They continue to grow revenue using cash flow into the 20% range. They are monetizing areas that they weren’t years ago.

Technology is probably the most important secular long-term theme in the market. This company plays right in the middle of a couple of the key themes, but the most important is Cloud and Search. He sees signs in the near term that some of the more cyclical sectors, like financials and industrials, may be seeing some rotation into those names with a little money coming out of technology. (See Top Picks.)