Sectors: Technology
MP1 has plunged over 40% in less than 3-moths with the elastic interconnection service provider following tech lower in a magnified manner after delivering a very average 2nd quarter trading update, clearly not good news for a stock priced for growth – quarterly revenue increased 8% which was not enough to appease investors as the company increased their investment spend.
Unfortunately it was not all good news for our International Portfolio overnight with digital and mobile payment business PayPal (PYPL US) getting smashed over 20% after its slow growth stunned Wall Street leading to the stocks largest drop on record as downgrades flooded through the market. In line with todays report this is a position MM doesn’t want to be holding…
Its always nice to get a purchase right and our “buy the dip” move into Google Alphabet (GOOGL US) is looking great after the companies stellar result overnight. After surging over 8% fresh all-time highs look a matter of time for this almost $US2trn business, in line with our general outlook MM will be monitoring for a failed “pop” on the upside…
APX +7.99%: A strong performer on the market today and technically APX looks great for a continued rally. Their 2nd largest shareholder – London based asset manager Mondrian Investment Partners who manages around $US10bn – filed up this morning going from a 6.18% holding to 7.37%, showing confidence in the Artificial Intelligence business. There is a lot…
MP1 has plunged 27.8% so far in 2022 following a disappointing quarterly update from the interconnection service provider plus of course the overall negative sentiment in the Tech Sector. As subscribers know we believe 2022 will be a year where quality floats to the top and high valuation stocks will need to deliver on growth to justify valuations i.e. the market…
Gaming machine operator ALL has corrected well over 20% being caught up in the tech sell-off but we believe this is quality business whose valuation is not challenging especially as the stock should benefit from a post Omicron reopening economy.
Electric vehicle pioneer Tesla Inc (TSLA US) is illustrating perfectly the markets current lack of appetite for increased future earnings I.e. growth. At MM we are unlikely to buy TSLA but after the 33% correction driven by sentiment the risk / reward looks attractive for the believers in Elon Musk, the biggest issue is what’s a fair price / valuation in today’s new environment – definitely not one to throw the kitchen sink at!
Household name Google has been on our radar for a few months and following its 17.5% correction we believe value has returned to the stock making it an ideal candidate to switch into as we look for a decent bounce by quality US tech names.
Z1P -2.13%: the rumours swirling overnight about a potential merger between Zip and Sezzle (SZL) were confirmed before market today. Zip said discussions were in very early stages between the two BNPL companies with news reports suggesting an all stock offer was being explored to create the 3rd largest US BNPL company. Scale is key here, and the deal…
MM already holds and importantly still likes ALU after its recent 20% pullback – pretty standard for the sector in 2022! For those subscribers who’ve been asking when is a good time to buy ALU we feel the answer is now and if we weren’t already long it would be on our menu today. We hold a 3% weighting at inception in our Flagship Growth Portfolio with our original entry at $26.97.
