Adding on weakness

The US tech sector has been weak of late, so a couple of holdings were increased.

Added to Slack at 25.43 and Mongo DB at 126.56. Both closed lower, but time difference prevents me from dealing in the afternoon NY time. Both of these companies have a long runway, but neither are affected by the present trade war between the US and China. The same applies to many high growth US tech stocks and good numbers should continue whether or not there is a recession in the US.

On the consumer side Roku enabled smart televisions are to be sold by Walmart under their own brand which is usually bargain priced. If there is a recession, I think more people would cut the cord and move to the cheaper internet alternative. And Roku now has its own output (with advertisements) for free, so user numbers should continue to grow even if subscription channels like Netflix experience a period of slow growth given the competition from Disney and others. All the subscription channels are available with a Roku TV or box.

Early September trades

I finally sold out my remaining position in Premier Oil. The holding has moved in and out of profit, so pleased to take a gain of 10p per share.

Roku has continued its upward path, so reduced a bit more at 167.43. This is still my largest holding, but it never hurts to take some profits along the way. The cash went into a new holding of Workday (WDAY) at 175.16, and as there was adverse reaction to Slack’s first earnings statement since it became a public company I was able to double my holding at 26.6.

Alibaba (BABA) has just announced the acquisition of another Chinese e- commerce company for 2 billion dollars. Kaola will strengthen its position in the growing Chinese import e- commerce market which is still in its infancy and offers good long term potential as standards of living continue to rise in China. Initial market reaction on Thursday was good, but the stock ran into profit taking Friday.

End August Review

August has been dominated by the ‘so-called” trade war with China in the US, and Brexit in the U.K. So it is hardly surprising that equity markets have been choppy.

Looking at the US holdings, the best by far has been Roku, up from 103.33 to 151.36. My new holding of Mongo DB rose from its purchase price of 142.83 to 152.31. My new holding of Slack fell from its purchase price of 30.67 to 28.64. Most other US holdings recorded small price movements, apart from Nokia ADRs down from 5.41 to 4.96 and Snap ((watch list holding with a view to repurchase) down from 16.80 to 15.83.

The U.K. market was generally poor, as I suppose international investors were selling. I think that Bango was the only riser, up from 124.5 to 129.5. Prudential were surprisingly weak, down from 1698 to 1368, and Superdry were down just under 10% at 395.4. Of the relatively recent investment trust purchases, Smithson held on to most of recent gains at 1256 and Fundsmith Emerging were down just over 4% at 1140 (not forgetting NAV which also moved down to 1263)

I will be looking to make further changes as opportunities come along, as I still own funds and equities that give cause for concern.

The biggest takeaway from recent movements has been to stick to an irregular rule of investment – “find smart people”. One from years ago is now retired, another from a few years ago has been dropped because I don’t like short term strategies on spread betting with stop losses. So I’m left with two – both of whom are a lot smarter than me.