Opinions
Mike Philbrick
iShares S&P/TSX Information Technology Capped
XIT-T
BUY ON WEAKNESS
Jun 01, 2020
Stock price when the opinion was issued
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The Canadian tech sector is not great in that it is not diversified. It is a bet on SHOP-T. You could buy it on the next big swing down.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The tech sector should continue to grow. One must watch the valuation and consider the timeframe for investments. Long term growth of the sector should be positive. Unlock Premium - Try 5i Free
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Right now the fear seems worse than reality. The NASDAQ is down about 7% in a week. There could be another 2-3% drop, but there shouldn’t be a huge crash. There is inflation fear but tech has done ok in a growth environment. Companies are reporting solid earnings and growth should be noticed again. Unlock Premium - Try 5i Free
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Do not think there is a big rush to add more here. Unlike US tech ETFs, XIT is still very heavily skewed towards just five companies. There is potential and the bottom should be close. It becomes a question of position size and timeframe. Every time we think we are close to a bottom the market seems to roll over again. Unlock Premium - Try 5i Free
This ETF is really 25% CSU plus 25% SHOP, and 19% GIB.A. So if 70% of the ETF is in 3 stocks, perhaps you want to look at the stocks themselves to see which ones make sense. 5.35x price to sales is not cheap, so it's better to pinpoint names than buy the entire index.
OTEX and CLS are two names that screen decently for him, though he owns neither.
S&P Info Tech Canadian index. He would be careful here. It is at all time new highs. This is going to live or due by SHOP-T. He would be cautious here. The stocks representing large portions of this ETF are very highly valued and perhaps a little over done. Look for corrections down the road.