Here is a classic from Tobin Smith -
February 23, 2001
ChangeWave investing with Tobin Smith
Joe Dancy, co-editor of the IFC and manager of the LSGI Technology Venture Fund, provides the following interview with Tobin Smith, manager of the ChangeWave Fund (CWFQX). AudioInvestor.com provides an audio version of the interview. Click here if you would prefer to listen to the interview. Below is the write-up.
Tobin Smith, manager of the ChangeWave Fund (CWFQX), focuses on transformational change in the economy that produces opportunities for investors. The common thread of his strategy is to try to take advantage of the changes in the economy that increase productivity and efficiency.
Surfing the investment waves. . .
"Wave Investing," Toby's brainchild, is an aggressive investing strategy designed specifically to uncover stocks with exponential growth potential. When a rapidly growing economic or strategic transition starts to gain momentum, that's the beginning of a "ChangeWave." Companies in the ChangeWave are in a perfect position to ride these waves to impressive levels of stock appreciation.
Toby notes that one thing an investor must be aware of is where we are in the business cycle, since that will indicate which sectors present value to investors and where the growth will be generated in the future. Toby noted that retail investor sentiment was very low in late December, creating a great point to enter the market, but also stated that many stocks have had significant run-ups since then.
Because of the current problems in the telecommunications sector, the ChangeWave Fund has no companies in that area, but Toby notes that some investors have been under the mistaken impression that his fund is a telecommunications fund. One common theme of his fund is that it will attempt to capitalize on the growing market for information and data, and the generation, storage, use and transmission of that data.
Toby likes the energy sector. . .
One sector at the beginning of the information food chain is the energy and electrical sector, whose products are used to power the electronic devices, communications and Internet connections. In this sector, Toby likes Enron (ENE $72.15), which is below $70 a share. Sales for the fiscal year ended December 31, 2000, rose more than 100 percent from $40.1 billion to $100.8 billion.
He also likes Calpine, (CPN $43.72) which is below $40 a share. Calpine is engaged in the acquisition, development, ownership and operation of power generation facilities and the sale of electricity and its by-product, thermal energy, primarily in the form of steam. For the fiscal year just ended, revenues increased more than 100 percent, totaling $2.2 billion, up from $847.7 million.
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So where is the Changewave Fund? With picks like Enron.... |
