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COMMENT
GOOG 20 for 1 stock split. Stock split will take a while, as it has to be approved at the next shareholders meeting, which is not till July. Great opportunity for a wider distribution of shares. Volumes will go up a lot. Shares will now be more accessible at the lower value and more accessible for options. Lower price will encourage a lower strike price. Last year in general, there were more stock options traded than actual stocks, so it's a big deal.
Unknown
COMMENT
Tech sector. Digitalization of everything has accelerated multifold. Things are different now. Now we're in a perfect storm of rising interest rates, shrinking liquidity, escalating inflation, supply chain constraints. On top of that, a lot of stocks are rich, especially the ones that are more leveraged and unprofitable. On the other side, earnings are still pretty good, but that's as long as growth hangs in there. The Atlanta Fed predicted that US Q1 GDP growth will only be 0.1%. The whole Omicron situation is really starting to slow growth. It's going to be rough waters, volatile, which plays into the active manager's hands. Three tech trends this year: cybersecurity, metaverse, continued migration into cloud.
Unknown
PARTIAL BUY
Develop and sell enterprise information management software. Price target of $61.75 USD. You could buy some here at $45, and some at 43. Use a stop of $40. Last week, Gartner Research named it as a leader in content services platforms. A quality name, he just doesn't have room for it. (Price targets refer to the NASDAQ listing in USD.)
computer software / processing
BUY
51% market share in semi foundries, the biggest one around. Always have spent a lot on capex, and recently announced this will continue. Medium-long term hold. Spend will unlock value over the next 2 years. It's gone sideways because what they make, they spend. Sabre-rattling about China is a bit of an outlier risk. 12-month price target of $151.
electrical / electronic
WEAK BUY
Assessing credit worthiness on behalf of banks and lenders. Extremely popular, and it took off. Now back down to earth. 12-month price target of $148. He's been in and out, you have to be nimble. Perhaps, you may want to use the options market, because then you know exactly how much you have at risk in the market.
Technology
PARTIAL SELL
Great quarter. Yes own it, but it has a pretty short runway. 12-month price target of $179. He's writing some calls around $178-179 to take some profit, because it's so close to the price target. Tremendous cashflow. They can weather the storm clouds gathering, whereas some of the smaller software companies are really affected by inflation, etc.
electrical / electronic
HOLD
Off 25.5% today, after reporting last night. Q4 was pretty good, but the problem was the guidance. He has a small position, around 1%. He's trying to decide what to do. He doesn't like buying things that are going down. He's going to sit tight, not buying or selling, wants to have it settle. Analyst price targets have moved down to $185-190. Buy at your own risk. It's a massive company, one of the biggest fintech companies out there, so it's not going away.
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