Sectors: Software
Good morning MM people,
ATEC offers broad exposure to Australia’s listed technology sector, with its largest 5 holdings currently Computershare, NEXTDC, Xero, CAR Group and TechnologyOne. If our SaaSurrection thesis proves correct, the ETF provides a straightforward way to gain exposure to a sector recovery without having to identify the individual winners.
This huge $US16bn ETF currently holds 114 names with Oracle, Microsoft, Palo, Palantir, and CrowdStrike its largest 5 holdings. The ETF costs 0.39%, but importantly for local investors, it has $US exposure; a weak Greenback weighs on its performance for local investors. Over the last 3-months its gained +19%, compared to the ATEC’s +11%, but some of this outperformance has been offset by strength in the $A against the $US.
This ASX-traded ETF provides excellent exposure to the explosive moves in Asian facing AI-semiconductors, with its largest 5 holdings currently SK Hynix, Samsung, Taiwan Semiconductors, MediaTek and Alibaba.
Salesforce (CRM US) has been caught in the aggressive software de-rating, with the stock falling from above US$350 in late 2024 to around US$200 today. That is a significant reset for a business that still has strong recurring revenue, high margins, substantial free cash flow and a net cash balance sheet.
Today (21 May) in your report on SDR you said:
The Australian software stocks illustrate the current soft underbelly of the ASX, both on the way down and back up. The ASX sector fell far harder than their US peers while now also failing to bounce as well, they will ultimately get their mojo back, but for now it feels like a catalyst is required.
Good morning Team,
In view of Hormuz, what is your valued opinion of WTC?
Regards,
John
I’ve just signed up for another 3 years – love your service. I’ve made some good profits so far this year but it’s time to do my ‘tidy up’ of investments before end of financial year. I’ve been through your website and assessed all the laggards in my portfolio, ready for selling before June. I have assumed that any marked Active in your portfolios are at least holds.
With that in mind, I was hoping to get your views on prioritising the following stocks. My problem children are CAR, CSL, HLS, NXT, RDY (It still says active but I think you have turned negative on this), SHL, TWE and ZG:US
I have a fairly long term view so don’t mind holding if there is good potential to recover well and provide a respectable annualised % return in the next 5+ years. PLS was a great example where your advice encouraged me to hold at a loss for quite a while and I only recently sold out for an excellent return.
