A bit of profit taking

I mentioned the rationale for my very recent addition to Alibaba. This remains a core holding but I took some profit on the additional shares.

Also reduced AMD – still a significant holding but I prefer to keep to sensible percentages within my portfolios.

Wondering about BAT and it’s high yield. Last sold my holding at 3179p, now 2538p.

Bought Inphi

Added a holding of Inphi yesterday. The company is a global leader in high speed data movement interconnects. So the business is involved in solutions for AI, 5G, data centres, and edge computing.

They have some large accounts, notably Microsoft and Huawei, so need watching closely. But with AI and 5G the view that one needs “to be in it to win it” comes to mind.

A bit surprised that there were no other holders where I do business – and their depot value covering all clients must be about 70 billion dollars. So hope the stock will move into the mainstream sometime soon.

Noticed that Slack (around 29) seems to be out of favour at present. A bit strange as nobody much wants to go to their offices anytime now, working from home has accelerated, and the WHO are talking about two years before things start to return to normal.

A touch of reality

I mentioned that Gilead were sold recently – price has been weakening while people try and assess relative values of CV19 therapies, and theirs is somewhat expensive.

What caught my eye is that the EU has pre ordered a huge amount of vaccine. No company was mentioned but what is the betting that Glaxo/Sanofi are the front runner. The vaccine league table for 2020 has them first and third. Anyway I could not see much harm in buying a holding in Glaxo – I’ve owned it in the past – no longer a growth story, but a 5% dividend yield plus the prospect of huge vaccine demand – whether their own formulation or stuff made under licence – grabbed my interest.

My semiconductor stocks are doing well, especially AMD that were only bought recently. One reason is that Intel has run into a few problems – just at the wrong time – demand is strong. Intel has been trading on a low multiple. plus a 2.7% dividend yield, which made the stock look cheap bearing in mind that there is plenty of free cash flow available to correct manufacturing problems and move forward. So I bought a holding in Intel. Clearly their management see the stock as cheap too, because within a few hours of my purchase they announced an accelerated buy back of about 5% of their equity (part of a larger programme to buy back about 10% with 3.9% already done). The news of manufacturing delays is already out there, so I guess that the management are not expecting any further bad news !

An update

A few changes have been made just recently.

Teladoc initially did well, but fell back on news of its mostly share exchange offer for Livongo – another key player in the telehealth marketplace. So I added to my holding in Teladoc – on the basis that either a stand alone or merged business should work out well over the next few years.

Also took profits on MMM – as it is unclear where the share price is headed after quite a reasonable recovery for an industrial stock.

Just noticed that Ant Group – one of the largest Fintech businesses – has filed for listings in HongKong and Shanghai. Alibaba should benefit due to the size of its holding, so added to this position.

There was also an informative article about Bandwidth in Forbes dated 13th August 2020. The trend away from old fashioned business telecom providers seems well under way as companies like Bandwidth offer cheaper solutions based on Voice Over Internet Protocol. Seems a sensible investment to keep !