Gonna post something I'm thinking of doing so people can tell me how silly I am.
I have some SGOV as I put my PFE sale into it yesterday but am looking at ways to raise cash. I am thinking of selling AMAT on Monday.
I've owned it since Feb/March 2022 and am up 105.63% on it. Plus I think tech has more run and it will run with it.
The reason I'm selling is I also have LRCX and KLAC, the two other main US equipment manufacturers. Their gains for the same period are, respectively, 233.69% and 257.24%.
I'm looking at that thinking you don't have to club me over the head much more to see that when it comes to that subsector, AMAT is the weak sister and owning all 3 really doesn't do much for diversification, they usually move together. So my tentative plan is to sell it.
It's a pretty large position so I'm looking at spreading buys between SGOV, IAU (gold), LRCX, KLAC, and AMD. There's also a possibility I enter a small position in one or two of the more speculative (IMO) tech companies with big growth numbers such as ANET, FTNT, NOW, or SMCI. But I recently picked up MRVL so I'm not sure I'll do that. I could also add more FIX, one of the few non-tech companies I'm seeing that sort of growth from.
There's also PLTR. They seem as far ahead of everyone in software to handle big data as NVDA is in chips. But that valuation is a bit crazy, even for me.
AMAT is a pretty large position for me so I'll have options.
I've recently run my screen and each of the above companies (except MRVL) have double digit 5-yr earnings and revenue growth. There are a lot of tech companies with big revenue growth numbers that haven't translated into earnings yet and I don't want much of that - and there's also plenty of tech where revenue has translated to growth.
Honestly, NVDA still comes out as the top company to buy after my screen but I have a whole honkin' lot of it (only company I'm overweight on based on what I spent to buy it) so I won't be adding.
One other company I'm thinking of selling is TXRH. My overall numbers on it are great - more than a double. But 12-month is another story and lately it's been trading between $160 and $180. But getting rid of non-tech to buy tech gets my sector weighting even more unbalanced - by present value, not what I spent to buy which I place more emphasis on. |
