RCM Technology Share Discussion Threads

[praipus] 09/9/2014 13:06

New thread with ATT ticker

[philo124] 19/8/2014 18:42

NOW ATT Ticker

[collectivefriction] 28/5/2014 13:49

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."....

[philo124] 23/5/2014 16:35

On the up. I think.

[phil140158] 08/4/2014 20:59

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?

[collectivefriction] 08/4/2014 09:12

Quite a scary drop - shouldn't expect to see this with a fund. Loads of trades too.

[peart] 12/3/2014 07:00

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.

[praipus] 11/3/2014 14:47

Hi Peart,
thanks for your reply, please read posts 43 and 48 above for background and my original question.

[peart] 11/3/2014 11:40

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.

[peart] 11/3/2014 11:32

Yes - iphone, but would consider others next time I replace it

[praipus] 07/3/2014 12:45

Do you own any Apple products?

[peart] 07/3/2014 06:53

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!

[peart] 01/3/2014 19:06

He's right to sell down apple - glory days are gone, though still a great company

[philo124] 01/3/2014 14:40

Still doing OK.

[praipus] 12/2/2014 08:47

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!

[flatoutfred] 12/2/2014 08:37

Just been offered 543 to sell !!

[flatoutfred] 12/2/2014 08:29

Yah, me too ! Nice open today !

[philo124] 12/2/2014 08:09

let them run.

[flatoutfred] 12/2/2014 07:24

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 ?

[praipus] 11/2/2014 17:59

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?

[philo124] 11/2/2014 15:22

RTT is great for long term.