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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.
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.
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 softwareprocessing
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.
Kim BoltonOwned
electricalelectronic
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.
Kim BoltonOwned
electricalelectronic
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.
Kim BoltonOwned
0
RISKY
Caller is down 34%. He's looking at it carefully. Seems to have caught a bit of a bid recently. Pure play on the metaverse, lets people develop their own games. Easy to use, for the beginner-intermediate. He also likes Unity Software, for the intermediate-advanced. Problem is both are not profitable, and with rising interest rates, slashing PEs, you have to be very nimble. He's reluctant to give 12-month price targets, as these are trades, not investments. Should go north of $100, but not much over $110.
Technology
PAST TOP PICK
(A Top Pick Jan 21/21, Up 39%) Took profit, trying to find space to buy again. Leading IT consulting powerhouse. Cloud integration and project management. Massive client base of top companies. Price target of $416, decent runway. Buy in thirds here at $353, 335, and 315-320. If it breaks a stop of 300, something nasty is happening. Yield is 1.4%.
Kim BoltonOwned
other services
PAST TOP PICK
(A Top Pick Jan 21/21, Up 11%) Reports tonight. Price target of $209. King of CPUs, competes with NVDA on GPUs. Outsource manufacturing. Making great hay on 5G. Recent acquisition will help them scale up to smartphones and PCs. Buy in thirds here at $175, 165, and 155. Stop of $145.
Kim BoltonOwned
Telecommunications
PAST TOP PICK
(A Top Pick Jan 21/21, Down 80%) Broke price target last year 5 days after buying. So he took profits. It's become erratic technically, and the price action isn't very good. He's not gone back in, wouldn't recommend. One of the two pure plays on AI along with PLTR, which is also volatile. (Analysts’ price target is $31.50)
Technology
HOLD
Reported fantastic quarter last week. Average 12-month target of $383, good runway in front. If you own it, hold on. He added at $295. Recent acquisition increased its addressable market, excellent fit for MSFT. Should always be a core holding in a tech portfolio, though you can trim it here and there.
Kim BoltonOwned
computer softwareprocessing
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