ALU develops electronic design automation software (EDA) that underpins printed circuit board design, and although we like the Sydney based business we cannot ignore the value contraction that’s washed through growth stock markets in 2022, even heavyweight Microsoft has corrected over 30%. Normally at this stage we would bore down into the fundamentals of individual stocks but our next move is likely to be about reducing our exposure to growth stocks into strength as we believe it may be years until investors are prepared to pay the type of valuations we saw post COVID.
- Altium is a quality tech name who already pays a small unfranked dividend but its expensive and MM can see plenty of sellers emerging into a 15% bounce.
MM is considering selling ALU ~$30
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