Sectors: Technology
As the property market in North America improves, Zillow is a stock worth looking at. The stock has a storied past, its major shareholder is one of Australia’s largest hedge funds, Caledonia, headed by well-known billionaire Will Vicars. Will & Co employ a highly concentrated strategy, backing a handful of stocks in a meaningful way.
On-line auto-classified business CAR is another quality business that MM has been flagging recently. Although we have been too cautious in hindsight, the stock has advanced +12.6% so far in 2024.
The sports tech company has quietly turned into one of the star performers in the Emerging Companies Portfolio, now sitting on a ~45% gain, with the stock up around 30% over the last few weeks, hitting 2-year highs in the process.
Data centre operator NXT is a stock we have liked over the last year, but we chose Goodman Group (GMG) as our preferred medium-term exposure to data centres. Both stocks have soared this year, illustrating that the theme is on point. The company delivered a solid half-year result at the end of February, with a 10% beat on earnings (EBITDA) propelling the stock higher, making it another stock we like into “dips”.
Accommodation booking platform SDR delivered a solid result last month, although revenue growth was marginally below some analyst expectations. This business is the booking and payment engine behind a number of hotels, and it is enjoying the ever-improving outlook for travel and tourism.
We continue to believe AD8 is a great growth story, and our enthusiasm has increased for the stock over the years as it has built itself into a world-class company.
This week, there has been an ongoing discussion on the desk around Apple, and whether or not we should be trimming or even exiting our longest-held position in the International Equities Portfolio. The portfolio kicked off on 26th June 2019, and Apple is the only original member to have been there for nearly 5 years. The position is up ~270% since then, and the portfolio collectively has generated 17.47% pa, implying Apple has done significantly better than the average constituent.
Hey James and Team
The old Facebook rallied over 3% overnight as it continues to outperform, supported by its strong earnings report delivered early last month when it announced its inaugural dividend – sales jumped 25% over the year with EPS of $5.33, well above the $4.96 expected. This stellar result has taken the stock above $US500, but we feel another period of consolidation, as we saw in 2H of 2023, is close at hand – another stock we would put in the “buy the dip” bucket.
Hi MM Team,
I have noticed that Droneshield (DRO) has oscillated since the beginning of the calendar year between $0.35 and $0.90+. Do you know the reason for the extreme volatility?
Best regards,
John
