Security and AI - technology

I read in the AFR recently about some of my IT stocks, purchased within the last 3 months.  It is quite incredible how big some of these stocks have grown, unnoticed by the average Aussie.

A few of these stocks like WTC ($4 billion), NWL ($1.7 billion) and TNE ($1.5 billion) are not small entities.  That also means some funds hugging the indices cannot ignore them.

They are however not as spectacular in performance compared to cobalt stocks... but I am contented!

SPI

It is always impressive when European and US markets are falling (overnight) but the ASX is expected to open 11 points higher on Tuesday!  One of the best indicators of the opposite trend is the price of oil (and gas consequently) and the price of gold.  Australia is still seen as an energy and gold producer.  Both have gone up by 0.4% and 0.7% respectively.

But whatever happens, I still have a garden to attend to!

AVZ

I read this morning that Alan Kohler has listed AVZ as one of his bubbles as it has risen 1470% in the last year.  While he advanced his take on the demand for lithium, his only bubble-reason is that it is in Congo, with its corrupt politicians and unethical use of child labour.  However, he failed to highlight that AVZ's large potential lithium resource just need a Chinese lithium battery maker to want it...

I haven't bought a lot of it but the article will initiate some selling by other investors.  Maybe, it would be a good time to top up before they start further exploration.

Vanadium...

This is my next metal to invest in.  Vanadium battery in theory has some major advantage over lithium cells.  Last longer and does not get as hot.  However, the technology seems to floundering relative to lithium.

My problem was trying to find out who are the big vanadium deposit owners in Australia.  But by the time I got the answer, KRC has jumped a lot (25%) within a day and stayed there.  Others have also jumped (AVL) but I will be patient...

Cobalt and software/distuptors

I have to thank cobalt (AVL and AUZ) explorers and software/disruptors (HUB, NWL, WTC, IRI and TNE) for rewarding me with very nice alpha today.  It is also nice to know that what I jettisoned have mostly fallen in price.  However, one went up a lot but how was I to know there was going to be a takeover?

I can't say I have been a contrarian for these stocks because while I have been topping up, it is usually when it goes down from previous days' rise and rise.  However, it is great to top-up and find the share price is going up further.  Well, sometimes it did fall too but overall I have done well over the last 2 months switch from non-performers/losses to these new stocks.

Alpha and WTC

On a good day on the stock market, anyone can make a good recommendation.  However, it is always ALPHA that I want.

Currently, the spice is Australian software stocks.  But the flavour may fade in days.  Oracle and another big software company have each spent over AUD$1 billion acquiring Aussie software.

As Warren Buffett advised, don't buy anything you don't understand.  Well, I can never follow his principles but my father said to buy anything that makes good reliable profit.  I would add reliable and INCREASING real profit and not incumbent with debt.  I am not totally following my father either because he said the dividend has to be higher than interest earned on deposits in banks.

This morning, I sold QHL a modern technology stock at a loss for WTC.  Of course, I can never get the trough but it did go up from $13.40 (what I paid for) to $13.87...  I have been topping up on WTC so those foreign takeovers came at a good time!  Luckily, most were bought earlier.

Fund managers wanted the founder of WTC to sell some of his shares to improve liquidity.  So after he has completed selling off an extra 2% out of his holdings, the price went up further.

Aussie software...

When a software stock is available for sale, and no major company is interested, it stays off the radar... and underpriced.  However, suddenly when Oracle wants it, everyone wants a piece of Australian software!

I have taken to Aussie software stocks in the last month.  I don't really understand how they work but I do know their profit (the level and the duration).   If their profits are increasing, it is difficult to ignore them!

I don't have shares in Aconex but I have bought about 5 new stocks... and they replaced energy or mining stocks.

Lithium and Cobalt... and Graphene, and bits and pieces

Electric cars are being ushered in by a few governments to replace those based on fossil fuel.  However, based on current technology, you need lithium battery which, for reasons which I don't understand, also needs nickel, cobalt and graphite.

NMT is a stock that I nurtured a loss for a long time when resource stocks took a severe hit with global economy downturn.  China no longer requires as much metal as before.  However, because of demand for lithium, NMT has been rising and rising.  So today, my collection of NMT has turned green for the first time after a long time.  It is still a loss because of loss to inflation.

Today is a great day because my lithium, cobalt and graphite stocks have jumped.  And most of my new disruptors and technological stocks have also performed well; most, not all!  Topped up my smallest of the new equities, NML today.

AMI has got a great future... so I am participating in its SPP.

WTC, IRI, TNE, HUB and NWL

I was flabbergasted that WTC is a AUD$3 billion dollar company and most people have never heard of it.  And that included me.

It is becoming very hard to choose which stocks to invest in as disruptors and modern technology are moving into the investment scene.  While Warren Buffett advised not to buy anything you don't understand, it is really quite difficult as most people don't have expensive advisors.

I took a plunge and invested in a few software companies recently.  They have not been disastrous and most have been performing okay.  These include WTC, IRI, TNE, HUB and NWL.  I follow one of my father's words of wisdom....  Buy those that are profitable!  But so far dividends are illusive even though their profits have been rising.  And there are quite a few complimentary reports on these stocks in the media.

Old favourites like banks, the ASX, retailers (including WES) and SYD (another airport is being built by the government), may not be as lucrative in the near future.  The question is when do you get out of them?  And who else do you invest in when they tumble down?

NST

Gold miners may not be trendy but with a minor headline like "Northern Star grabs key stake in Echo Resources", it reminds me that there are still a few productive gold miners worth investing in.  Or rather "investED" in.

NST is one of my star performers for the last few years, and it pays a dividend.  No debt, and with a mountain of CASH!!!  And when it explored, it discovered more gold.

ASX

Interesting article recently in the AFR.  It seems to be talking about Xero, a technology company from NZ.  It is expected to switch into the Australian market to raise its profile and make it easier to raise money.

However, the real stock recommended in fact, is the ASX.  Follow what my father advised...  Only buy shares that give good dividend out of recurrent reliable profits, which is higher than interest from bank deposit.  The profit has to be long in history (suggesting serviceable, low or no debt with good management).

Well, other players may be around but ASX is still a monopoly, legal and sanctioned by the government.