Telemedicine has recently been one of the weaker tech areas, but long term investors still like the sector. As American Well is one of my smaller holdings I took the opportunity to add a few more shares today.
A large reversal by the technology sector during the past two weeks coincided with rising Treasury yields. In fact it would have been best to sell everything in February and wait to buy back at lower prices !
The holdings that were reduced to take profits may still trade up to higher highs over the course of the year. But I thought it best to diversify using some of the cash balances.
I have been looking to buy back into Nvidia and Zoom for some time now, and the pullback has enabled purchases at much reduced prices. I regard both companies as potential leaders over the medium term. The case for Nvidia rests on the likely growth in demand for chips as new technologies are introduced. The case for Zoom – now widely used for meetings that used to be face to face – is that restrictions are being lifted too early in some parts of the United States and elsewhere. Evidence is beginning to emerge of quicker spreading variants of coronavirus and of new clusters among people who have been vaccinated. Maybe less deadly, but I think that demand for Zoom and also telemedicine (where my holdings are Teladoc and American Well) is not going to die down anytime soon.
Earnings announcement was disappointing and caused a sell off. Next day the stock rallied on an announcement of a deal to get access to Walmart customers. Platform seems inferior to Shopify and Pinterest. So I sold to provide a bit more liquidity.
Took a small profit on Opendoor after reading about its struggle to become profitable, which could take a long time.
Also reduced Magnite again – the holding is still pretty large and there is a huge gain on recent book cost. I would be happy to see this stock way up by the year end, and researchers are bullish. However the chart is indecisive, and a pullback is certainly an option.
I have absolutely no exposure to crypto currencies, and do not intend to get involved in ownership any time soon. But I was interested to hear about the business model of Voyager Digital – quoted in Canada and OTC in the U.S. Then I saw that the company just raised USD 100 million in an equity offering at USD 13.10 – so I thought it right to pay up and have a sensibly sized holding.
I have not held CrowdStrike for very long. However the share price is up from the 130s to 240s. Seemed a good moment to take a profit on half of my holding. As my liquidity in “personal” is lower than “pension” I sold the tax protected holding in “personal”.
Markets have had a good run, so becoming a bit more cautious .
After Atomera’s results the stock moved lower, but still somewhere in between my first and second sale prices. So for an abundance of caution another 10% were sold today, leaving 70% of the original purchases.
Did some research on Star Peak Energy, which is about to merge with Stem – who style themselves as a Smart Energy Storage business. Like the look of this, so bought today.
As Atomera and Magnite have shown amazing strength I decided to take profits on another 10% of original holdings for both. That leaves me with 80% of my original Atomera and 75% of my original Magnite holdings. Think the total sale proceeds from these two so far may have exceeded the total costs of both holdings – need to check this.
I had a small holding in Unity Software that was down on book cost – as my smart advisers remain relatively bullish I added to this holding today.
I have also read some interesting comment on Pure Storage and decided to add a holding today as well.
In general reducing holdings that have been very successful and trying out a few more ideas.
The first company is called Social Capital ……………ends in V. It is a SPAC business which will merge with SoFi, a popular financial app.
The second company is Xpeng, a Chinese electric vehicle manufacturer.
Relying on smart people’s research on these two.
Also noticed a company named Hindenburg has been writing negative reports about SPACS – maybe manufactured for bank and hedge fund trading desks. Wonder if they realise that the airship Hindenburg burned then crashed in 1937 – not the other way round.
I sold my remaining position in Morrison, the UK supermarket group, as this has stayed around book cost for a long time now. Probably got my thesis wrong on this one, so when in doubt, get out.
Trimming stocks that had a good run – my 10% sales were Atomera (30.80) and Roku (424.78). 15% sale of Magnite (38.23)
Watching and waiting
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.