Sold Intel and bought Big Commerce

Intel was proving a bit disappointing as an investment, and maybe will take time to get back on track. In the meantime its competitors are doing well. The announcement that their CEO is stepping down in a month or so caused a spike in the stock price which I regarded as a selling opportunity. The reasoning in the short term is that a new CEO can close down divisions, set up new lines of business, etc. Intel has a strong balance sheet, so the company is in a position to pay for all of this, but earnings could disappear until the smoke clears.

Also bought a starter holding in Big Commerce, an e-commerce platform for growing sales. People compare it to Shopify, which is already owned.

Bought Lloyds Bank and Opendoor Technologies

A chartist whom I follow has got a few UK bank shares right in the past. Made me a good profit on Standard Chartered some time ago. So now he likes Lloyds and Barclays, and apparently the fundamental guys mostly agree. Bought a starter holding in
Lloyds and will see how this goes.

Another analyst – who got my attention with his write up of CrowdStrike- likes the potential of Opendoor – so another starter position has been added.

Keeping my eye on stocks like Shopify and Zoom. The latter has now had a big fall from its high – might be worth buying soon.

Year end results Part 2

The other part of my investments consists of personal holdings. Unlike the SIPP there are a lot of capital movements in and out, so time weighted performance figures are more important when looking at results. My headline valuation was down 24.4% over the year, but my time weighted figure was plus 11.7%. Much of the decline in the actual value was due to redemption of a property mortgage. I don’t have much of a clue how my benchmark is made up, but see this was up by 3.5%. The benchmark on my SIPP is base rate plus 1%, so this was only up 1.3%.

I mentioned benchmarks because it is important to understand that managed portfolios can be scrutinized by various non revenue earning departments with names like compliance and risk. The effect of this is that investment managers become more attached to index tracking funds that cover all or parts of the benchmark.

The best performing stocks in this portfolio were Roku and Atomera, and Bango also deserves a mention. Doubt that any of these is included in any index of significance !

Bought Unity Software

Unity was recommended as a long term position when the price was a little higher. As luck would have it, I was too busy to trade.

Bought a part holding today at 138 and will be watching to accumulate.

Year end results Part 1

The larger part of my investment portfolio is in a SIPP – self invested pension plan. The actual figure for 2020 is plus 8.0% and the time weighted figure that allows for pension payments received is plus 13.3%.

Best performing holdings during the year were Magnite and Roku, both of which appreciated strongly, adding well over 100% to book costs.

More to follow

Added to FuboTV

Finished the year by adding to my holding in FuboTV – which has seen volatile price movements of late. I have read that there is a huge short position by hedge funds, yet a number of analysts who cover the tech sector are positive about longer term prospects. My sources on OTT have been very reliable in the past – also wonder if big shorts (or longs) in relation to shares available to trade prior to quarter days are being used to manipulate hedge fund valuations – they will know who is leaving and who is joining usually a month or more in advance.

Sold Alibaba

When Alibaba reached its high of 319 or so for 2020 I thought this investment was there for the longer term. However the CCP threw a spanner in the works over the public offer of Ant (which was cancelled). There must be party members and relatives holding the stock from the HongKong listing – maybe they needed to be punished by the Central Committee too. After reflection I decided to sell at 260 – a good profit on book cost, but not as good as it might have been.

My Chinese exposure is now limited to Kingsoft Cloud, which is a smaller cloud play in China. This company seems to have the right backing, which is important in China, where party officials can influence commercial decisions.

Sold Glaxo – bought FuboTV (FUBO)and Luminar (LAZR)

The rationale for buying Glaxo was that they and Sanofi were major vaccine companies. There was news that their COVID vaccine collaboration would not produce a viable product anytime soon (2022?) so sold this holding.

Bought small holdings in FuboTV (adding to entertainment sector) and Luminar Tech (driverless vehicle technology).

Learned that Magnite (now a larger holding due to price appreciation) should benefit substantially from its partnership with Disney (whose subscriber base is now huge).

Completed switch from Inphi to Marvell

About a month has passed since I sold half of Inphi after buying Marvell. Yesterday I sold the remaining Inphi and added the approximate proceeds to Marvell.

There is no point in retaining Inphi, as the takeover proposal is part cash. I hold cash as a portfolio investment in any case, so I can buy without selling investments to cover. There is no real logic in being fully invested , unless you just hold T-Bills or government securities with less than a year to maturity.

Bought Kingsoft Cloud

I don’t know a lot about the Chinese Cloud, except that it is a few years behind the U.S. Cloud. I still hold Alibaba, the largest participant, and now have added Kingsoft – the number 3 Internet as a Service company in China. The company has just been added to the MSCI China Index and was brought to my attention by the Smart People researching tech ideas.