Thoughts on ALU & APT
Hi James.
Thanks for your continuing good picks etc. Just a question re two current stocks that are doing quite well---ALU and APT. Do you have a Profit Target for these? Or are you going to Hold long term??
Many thanks
Mick O’
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Answer
Hi Mick,
Thanks for the positive feedback, at this stage 2 very different scenarios here courtesy of M&A activity. NB, we own Altium (ALU) but we don’t own Afterpay (APT).
- Altium (ALU)) $35.01 – Following Autodesk’s (ADSK US) withdrawal of its $38.50 (potentially $40) bid for ALU this has become more a fundamental play, the reason we went long in the first place. We like ALU’s medium-term outlook targeting fresh all-time highs. I would be very surprised if their upcoming results on the 23rd August were not better than the market currently expects.
- Afterpay (APT) $131.71 – Following Squares (SQ US) bid for APT, the APT share price will simply trade as an ASX listed proxy for Square shares given it is an all scrip offer. We like the rationale of the SQ takeover along with the SQ business more broadly therefore we’d stay long if we held it.
