Sectors: Technology
On the Market Matters Website, the company page for Alibaba (BABA US) shows a consensus price target of $152.86 (80% upside from current levels), with 42 buys, 3 holds & 2 sells. The market collectively believes BABA is deeply undervalued and should be trading at significantly higher levels. In recent days we’ve met with Mark Landau from L1 Capital and attended a webinar…
As we mentioned earlier, Apple (AAPL US) stole the show overnight ending the session up +2.5% while the tech-heavy NASDAQ only managed to advance +0.8%. The stocks ~15% below its all-time high and while it might prove a big ask to test the $US180 region into Christmas we can still see investors buying dips in this quality business.
MP1 is a $1.2bn software-based elastic connectivity provider that could fit into either of our Flagship Growth or Emerging Companies Portfolios although its high volatility is likely to dictate a relatively small position in the former.
We added SEK to our Flagship Growth Portfolio last week just above the psychological $20 level. Encouragingly after a weak start, yesterday SEK rallied throughout the session while the underlying index drifted lower i.e. there’s plenty of appetite for stock around the $20 handle.
We allocated 3% of our Flagship Growth Portfolio into online real estate platform REA yesterday ~$123, we were hoping to start accumulating under $120 but the stocks remained resilient, even yesterday it only fell -2.1%, outperforming both the broad market and Tech Sector which fell -2.6% & -3.2% respectively.
XRO has experienced a year to remember as its suffered from huge valuation contraction which was compounded by an average to poor result last month. It was disappointing to see ongoing UK weakness it being an important region for the business making up ~30% of revenue. We trimmed our position in XRO recently nearer ~$100 and we’ll only be interested again if it falls back into new lows.
High flying ALU rallied another +4.1% yesterday on a day when all names in the Tech Sector advanced. The Printed Circuit Board (PCB) design platform reported stellar FY22 results in August, revenue was $221m (+3% ahead) and EBITDA $81.1m (+8% ahead) while their FY23 guidance was also +8% better than consensus making this arguably the best result we saw from the recent season – MM is bullish even from these elevated levels.
MP1 rallied +12.6% yesterday another example of a battered name being capable of exploding higher when markets adopt a “risk on” attitude as interest rate fears diminish. The company’s result in August wasn’t exciting but at least there were no hidden negative surprises, the stock looks very capable of challenging the $11-12 region on optimism of an operational turnaround.
360 +16.36%: while the rally in tech stocks helped, Life360 was also boosted by strong guidance into the 2H. The digital safety company presented at a technology conference today and painted a rosy picture for the rest of the year and beyond. They guided to an EBITDA loss of $3-6m in the second half before targeting profitability and positive cashflow by…
Online real estate platform REA has almost halved from its mid-2021 high under the weight of selling across growth stocks and the increasing concerns around the health of the Australian property market but unlike SEK our preferred scenario is the stock has already seen its 2022 low hence we’re keen buyers of the current pullback.
