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RCM Technology Share Discussion Threads
Showing 51 to 73 of 75 messages
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|Tech Stocks lead the bounce back in the US
Nasdaq Nears 13-Year High as Technology Becomes Loved
Technology stocks are back.
A four-day rally in the Nasdaq 100 Index has pulled the gauge within 0.1 percent from erasing a 7.5 percent selloff from earlier this year. Exchange-traded funds that buy computer and software shares absorbed $1.1 billion of fresh cash last week, more than any other industry tracked by Bloomberg. That's a reversal from earlier in 2014 when investors were taking money out of the ETFs..........
......."Looking at the economy, one of the most compelling secular growth stories is technology and that's not going to change," Kevin Divney, chief investment officer at Beaconcrest Capital Management said in a phone interview from Boston. "As some of the high-flying tech companies with higher valuations were down 10 to 20 percent over the past six weeks, investors are going to start to see value."
.............Technology shares need earnings to improve to sustain gains, according to James W. Gaul, a portfolio manager at Boston Advisors LLC, which oversees about $2.7 billion from Boston. Apple, Microsoft Corp and IBM are forecast to increase profit by 8.7 percent on average next year, data compiled by Bloomberg show. That compares with 12.3 percent for estimated growth in the overall industry.
......."The general view on some of the old, larger tech names is that growth is slowing pretty substantially," Gaul said by phone last week. "It's going to be some of the smaller names that have more exciting products and actually have meaningful growth over the longer term."....|
|On the up. I think.|
|Hi, first post on the thread, but have watched RTT for ages looking for an entry. According to my calculation the discount to NAV is now 9.6% (?) anyone know if it has been wider than that?|
|Only thing I could find on thw web was this - and it seems relatively positive for RTT
RCM manager plays down tech IPO boom
April 2, 2014 - 11:17am - Cherry Reynard
Walter Price, manager of the RCM Technology Trust, says that the current IPO market in technology offers relatively few opportunities for investors to generate strong returns, but worries over a new technology bubble are overstated.
Fears of a new technology bubble have been mounting, as the Nasdaq hit highs not seen since the height of the last bubble in 2000 and a number of large, headline-grabbing initial public offerings (IPOs) have come to market.
Price says that the new IPOs have generally fallen into two camps: the first are companies such as Twitter and King, where the firm is in transition and needs to prove it can execute that transition effectively, or those that are strong, high-growth businesses that have come to market at extremely high multiples. He adds: 'Neither is likely to generate strong returns for investors.'
However, he does not believe that technology is displaying the same characteristics as it did during the boom years of 1999/2000. He says: 'We have a couple of stocks in our portfolio that are on 100 times multiples, but they are growing at over 100 per cent per year.
'There are also some companies that are losing money, but they are growing at 50-100 per cent per year and are not bleeding cash in the same way as stocks did during the last technology bubble. There may be a risk of a company disappointing on growth, but it is not likely to go bust.'
Price says that since March the market has rotated into some of the more defensive names in the technology sector, such as IBM, but he is retaining his weighting in higher-growth companies such as Facebook and some Chinese internet names. Facebook remains the largest holding in the trust at 5.9 per cent, with Google and Salesforce.com also featuring in the top ten.
Over one year, the trust is up 40.1 per cent, against an average return of 27.7 per cent for the wider technology, media and telecoms sector. Over five years, the trust is up 174 per cent.|
|Quite a scary drop - shouldn't expect to see this with a fund. Loads of trades too.|
|Any special reason for the drop? I know that Friday numbers from USA were pretty horrid, but that seemed to have been in the price.|
|Hi Praipus, thanks for your note - I don't really understand your question. I think that what you are saying is that you sold Asos only to watch it go up by nearly 6 times in short order and that you are fearful that the fund manager is making a big and similar mistake with Apple. Apple will not do this as 6 times Apple's current price would make apple worth nearly £3 Trillion dollars and on a p/e of 80. I view this as highly unlikely. ASOS is a tiny company by comparison and tiny companies can grow very fast justifying quick share price growth. If apple did get to a value like this in the next few years we would be in a 1929/early 70's/2000 style very dangerous bubble. Longer term (decades)it is possible for Apple to be worth this much, but I would bet on the likes of Dow heavyweights, GE, JNJ, XOM and dare I say MSFT reaching such heights first. If you made a profit on ASOS be happy with what you made. Look through the windshield and not the rear view mirror! I hope this helps with your original question. Apologies if I have misinterpreted it.|
thanks for your reply, please read posts 43 and 48 above for background and my original question.|
|Have my eye on the new nokia 1520. What I have or might do or not do is not relevant to my comment. The facts are that the gap has closed, the products are becoming commodities and there is a lot of competition in the space that was not there before. Just go and talk to your local carphone warehouse people or phones4u. Also read the apple reports of late. Things are not as great as they were 18-20 months ago.|
|Yes - iphone, but would consider others next time I replace it|
|Do you own any Apple products?|
|Just to expand a touch on my post of 1.3.14 - In a nutshell, Apple created a marvellous new advanced technology with the iPhone and made a fortune, but now other companies - Samsung and nokia/msft have closed the gap and customers who want the best experience with their gadgets have legitimate choices - its that simple. Remember the Sony Walkman, it was the same story - that's technology!|
|He's right to sell down apple - glory days are gone, though still a great company|
|Still doing OK.|
|No idea really.... but I tend to think let them run is the right thing to do.
I know to my cost it is extremely difficult as Freddy says "Why I'm not in the city":-)
The RCM/RTT Benchmark is the Dow Jones World Technology Index (Sterling Adjusted)so it might be useful to know when and how it's rebalanced.
I noticed on the interim report the manager had been selling down their Apple holding for various reasons which reminded me of when I sold ASOS (ASC) at 60p and went short at £3.50.... now it's £63!|
|Just been offered 543 to sell !!|
|Yah, me too ! Nice open today !|
|let them run.|
|I have no idea Praipus as I believe my strategy would change somewhat if I was in control of such vast amounts.
As a minion my heart would say let it run, my guts would try to exit on the peaks but my head would probably want to sell down to rebalance.
After all these deliberations and arguements I would probably go for option 3 LoL - why I'm not in the city !
What would or do you do ?|
|Agreed could be good long term. subject to the manager IMHO.
What do you think the manager should do with shares that run ahead?
1) Sell down and rebalance?
2) Try and market time the exit when the trend changes?
3) Buy OTM put options when stock is closing on market highs?
4) Let them run?|
|RTT is great for long term.|