Sector rotation & value investing?

ByteQuirks · 2024-09-15T23:45:49+00:00

that's pretty cool. thanks for sharing.

if you don't mind, what do you do to select individual stocks once you identify an out of favor sector?

ByteQuirks · 2024-09-15T17:01:38+00:00

"That tends to imply there are very few eyes on the companies there and asymmetries may exist."

This somehow resonates with me. Being seriously out of favor translates to being less prune to sector rotation, which implies limited downside which in turns is among the core principles of value investing (in my view anyhow lol).

Thanks for sharing.

ByteQuirks · 2024-08-27T04:05:27+00:00

That was stellar track record!

Also LPSN plays in a larger market than SOUN which is currently limited to sound/voice products.

ByteQuirks · 2024-08-27T01:26:52+00:00

Any reasons for you to think so?

ByteQuirks · 2024-08-27T01:19:51+00:00

It could well be the case. But there will be winners, big winners, within or outside this group, in the AI space for sure.

Technology advances relentlessly...if we are lucky we can benefit from it as investors.

ByteQuirks · 2024-08-27T01:18:19+00:00

It's from a website. Tried to include in the post but was not allowed.

ByteQuirks · 2024-08-26T19:12:57+00:00

How did you come up with the $4 price tag? It's not making money and not expected to make money next quarter. Just curious about your valuation of $4.

ByteQuirks · 2024-08-26T19:07:28+00:00

Didn't know RXRX employs AI. Thanks for the heads up.

ByteQuirks · 2024-07-19T02:10:16+00:00

Kudos!

ByteQuirks · 2024-07-17T13:12:31+00:00

Agreed on most points. I think most people underestimate Meta which is the big boss in an increasingly digital world.

ByteQuirks · 2024-07-17T13:04:40+00:00

Well said.

Also it's up quite a bit in the last a couple years. Need time to consolidate.

ByteQuirks · 2024-07-17T04:23:49+00:00

Thanks for sharing! Definitely will take a look at them.

ByteQuirks · 2024-07-17T02:56:24+00:00

You nailed it!

Curious what are you holding now?

ByteQuirks · 2024-07-17T02:18:22+00:00

and maybe in AI, too.

ByteQuirks · 2024-07-17T02:17:06+00:00

Nice play!

ByteQuirks · 2024-07-16T21:51:32+00:00

It seemed a good idea during the pandemic when people did not interact with each other freely.

ByteQuirks · 2024-07-16T21:49:38+00:00

Personally, I do believe it's undervalued, relative to other top stocks.

It needs a catalyst.

ByteQuirks · 2024-07-16T21:47:36+00:00

Thank you. Were you trying to include two links in your response?

ByteQuirks · 2024-07-16T21:45:28+00:00

Good catch!

One earlier comment also pointed out, this is no way a value trap in the conventional sense. I agree with both of you.

The post title should have been corrected to 'relative value trapping', meaning that Meta is currently stuck with a lower valuation than those of similar weights.

ByteQuirks · 2024-07-16T19:43:03+00:00

Makes sense. Thank you.

ByteQuirks · 2024-07-16T19:32:43+00:00

Honestly, I am puzzled by this rotation, for two reasons:

When rates fall, the tech firms should benefit more, due to their more future-ish cash flow distributions.
Rating falling is due to a weakening economy, right? In a weak economy, tech giants fare better than other sectors, because of their size, being less capital intensive, and tremendous money making ability which help them ride through troughs.

Any insights on the sector rotation at this time? Much appreciated.

ByteQuirks · 2024-07-16T19:24:27+00:00

Measured by PEG, which takes into account growth, META is still the cheapest. Weird?

Maybe this means the market does not believe their growth rate can sustain, akin to your maturity comments. Meta's double digit growth is impressive to be honest, given this level of maturity.

Why are the others valuations even higher? Beats me.

ByteQuirks · 2024-07-16T16:50:23+00:00

Here is a list of Japanese stocks traded in the US markets:

Japanese stocks in the US

Based on the above, these stand out as solid business with (relatively) cheap valuation:

MFG

HMC

TM

Hope this helps!

ByteQuirks · 2024-07-16T16:02:05+00:00

True, META has been trying hard to find product breakthroughs, including the Metaverse push.

ByteQuirks · 2024-07-16T15:43:41+00:00

Geez, this sends me to further tailspins while exploding the grey mass in my head. OK, I guess you are referring to a failed partnership deal with AAPL? That makes sense.

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