ALU develops electronic design automation (EDA) software and as such has been in the focus of the markets rerating of the growth, and especially tech names i.e. its 26% correction is more than double that of the ASX200. This is a business we like but as so often is the case with growth names what investors are prepared to pay for potential future earnings is key and as everyone is aware that its now less than in 2021 as inflation continues to rise, hence we will be monitoring this position closely if it follows our market view and bounces back towards $40 – remember we are looking to reduce our exposure to growth stocks into strength.
MM will reconsider our ALU position around $40
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