What I’ve done so far in this tech mini-meltdown:
First of all, I call it a MINI-meltdown because when I closed the month of May on the last weekend of May (two and a half weeks ago), my portfolio was up 36.2%, and as of yesterday’s close it was up 36.4%. A lot of tumult but not a lot of damage (as of yet).
Okay, what have I done? Well it was kind of a no-brainer for me. I had an oversized position that didn’t need to be oversized, and which has been going up almost every day while all my tech stocks were dropping 5% to 10%, so I sold a little of it to buy some stocks that still had a great future but were down because everything tech was down. Here are the details.
LGIH was at $32.40 when I ended May. It was an 11.1% position, and second in size only to Shopify. It is now at $37.15, up 14.6% in a couple of weeks since then. I trimmed some for cash, but it’s percentage of the portfolio didn’t drop too much because it was going up the past few days while everything else was going down. It’s still in second place, but at 9.6%.
So, what did I do with the money? I bought some:
Hubspot – They had great results and even surprised themselves and everyone else with a 3 cent profit, their first. Now cash flow positive every quarter.
Hortonworks – They announced an expanded alliance with IBM and, to quote from the press release: “IBM will migrate existing IBM BigInsights users to HDP”. If this wasn’t a tech meltdown, Horton would have been up 20%.
Mulesoft and Talend – I couldn’t resist when they sold off.
And I took a new 2.0% position in Nvidia
I helped finance the new Nividia position by exiting my little try-out position in The Trade Desk. It may turn out to be a mistake, but I just thought that Nividia had a dominant position (for now) in a lot of potentially very large fields, and from my experience with Criteo and Rubicon Project, the advertising field was a dog-eat-dog kind of competition where it was difficult to keep a lead. So I thought Nvidia was a better choice. But if you like The Trade Desk, you don’t need to argue with me. I’m no expert.
So that’s what I did. I’m not claiming it was the best course of action. It’s just what I did. I know that the tech stocks “could fall another 20%.” But this is just what I did. Yes I know that if they fall another 10%, all these TA shorts will suddenly appear again on our board saying all their charts say “Sell! Sell! Sell!” (just like they appeared at the very bottom in February last year to tell us to sell). But again, I’m just telling you what I did. Today I expect I’ll just sit back and watch.
Hope that you all do well.