Speculative Stock Portfolio

[aus_trader]

GWA has headed south and was sold.



Confirms the difficult trading environment and why there is hardly any trades in this portfolio lately.

 

[aus_trader]

A2M remaining position was sold which was the last remaining stock in the portfolio.


Closed Portfolio Positions:


As I mentioned earlier, it's not an easy environment to trade in at the moment, so staying in cash earning a decent rate now that the interest rate has gone up.

Will re-deploy the cash as and when conditions improve in the smaller end of the market and when opportunities arise.

 

[Dona Ferentes]

Harry Hindsight here:

[Taking] seven of the best-known tech companies from the S&P/ASX 200, ranging in market cap from $2 billion up to $33 billion: WiseTech, REA Group, Xero, CAR Group, Pro Medicus, TechnologyOne and Megaport....

A portfolio equally weighted to each of the seven companies starting from the date that WiseTech listed on the ASX (11 April 2016) would have returned an astonishing 1151 per cent to the end of May this year, against the Vanguard Australian Share ETF’s total return (including dividends) of 117 per cent and the S&P/ASX information technology index’s 208 per cent.


That’s a compounded annualised return of more than 36 per cent – more than double that of the NASDAQ Composite over the same period, and well over triple that of the broader Australian share market.

The catch is, however, that this is a portfolio of “growth” companies – meaning their earnings growth is not so dependent on the economic cycle, and the market typically looks out years ahead when valuing them. The higher the potential growth, the further out it will look.

Consequently, just like their international tech peers, this portfolio of stocks comes with a high forecast price to earnings (PE) ratio for next year, with an average of 70x, compared to the ASX 200’s 17x.

.... from the AFR