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My favourite tech stock

Technology share discussion
gbjbaanb
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My favourite tech stock

#131478

Postby gbjbaanb » April 11th, 2018, 3:52 pm

To help fill the board, tell us your favourite tech stock. Ideas are always welcome for share purchases:

Mine, GB Group (GBG). Its done very well for me, providing security software stuff to organisations like the government. I bought in after there was a bit of a hiccup in the government's managing of their Identity programme, that GBG was due to work with. As with all government IT messes, the news disappeared and the project went back on track.

and the SP went up and up after that. Add to recent news about fraud detection software being sold to Chinese financial institutions, I expect revenues and profits to increase further. Identity/security will always sell in today's world.

gryffron
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Re: My favourite tech stock

#132343

Postby gryffron » April 15th, 2018, 3:35 pm

Apple. A genuine Buffet/qualiport stock with massive margins, a huge defensible moat. Aspirational and affordable luxury, so market nowhere near saturated.

The only thing that bothers me is their huge cash pile. Historically, companies with huge cash piles have squandered them on useless non-core acquisitions. But so far, they've shown no sign of being tempted to do that.

Gryff

gbjbaanb
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Re: My favourite tech stock

#133259

Postby gbjbaanb » April 19th, 2018, 1:32 pm

gryffron wrote:Apple. A genuine Buffet/qualiport stock with massive margins, a huge defensible moat. Aspirational and affordable luxury, so market nowhere near saturated.

The only thing that bothers me is their huge cash pile. Historically, companies with huge cash piles have squandered them on useless non-core acquisitions. But so far, they've shown no sign of being tempted to do that.

Gryff


That's because their cash pile is sitting in a Cayman Islands account where they can't spend it for fear of being taxed :-)

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Re: My favourite tech stock

#133291

Postby Lootman » April 19th, 2018, 3:49 pm

gbjbaanb wrote:
gryffron wrote:The only thing that bothers me is their huge cash pile. Historically, companies with huge cash piles have squandered them on useless non-core acquisitions. But so far, they've shown no sign of being tempted to do that.

That's because their cash pile is sitting in a Cayman Islands account where they can't spend it for fear of being taxed :-)

Not any more. Trump's tax bill allows US companies to repatriate overseas profits in a tax-favourable way. It is anticipated that vast amounts will move to the US, especially from the big tech companies, like Apple, but also Google, MicroSoft, Facebook and so on.

Apple has made acquisitions before but they are usual modest in size. Google, MicroSoft and Facebook have done bigger deals.

I expect some will go to share buybacks, some to increase or introduce dividends, and some invested in the business.

The real question is whether all this repatriation is already priced in, however?

gbjbaanb
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Re: My favourite tech stock

#133548

Postby gbjbaanb » April 20th, 2018, 2:51 pm

Lootman wrote:
gbjbaanb wrote:
gryffron wrote:The only thing that bothers me is their huge cash pile. Historically, companies with huge cash piles have squandered them on useless non-core acquisitions. But so far, they've shown no sign of being tempted to do that.

That's because their cash pile is sitting in a Cayman Islands account where they can't spend it for fear of being taxed :-)

Not any more. Trump's tax bill allows US companies to repatriate overseas profits in a tax-favourable way. It is anticipated that vast amounts will move to the US, especially from the big tech companies, like Apple, but also Google, MicroSoft, Facebook and so on.

Apple has made acquisitions before but they are usual modest in size. Google, MicroSoft and Facebook have done bigger deals.

I expect some will go to share buybacks, some to increase or introduce dividends, and some invested in the business.

The real question is whether all this repatriation is already priced in, however?


Could be, but I think a tech fund or index would be a better choice at the moment, given the general upheaval across the board and the possibilities for "problems" caused by future regulation and legislation.

Incidentally, I saw an Apple van down our street today, one with a great big camera on the top. I assume they're making a streetmap thing like Google's and therefore probably pushing their own map technologies soon.

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Re: My favourite tech stock

#140228

Postby nautical » May 21st, 2018, 12:24 am

If you're interested in something much, much smaller and aren't afraid of an AIM stock, take a look at Tern PLC (EPIC: TERN)

Tern are slowly becoming something of a Judges Scientific (another AIM gem) but in the Internet of Things (IoT) space, with holdings of various sizes in 7 private investee companies (aiming eventually for around a dozen).

Of particular interest at present is their approx 57% stake in Device Authority Ltd, a private UK company who
provides solutions to address the challenges of Identity and Access Management for the Internet of Things (IoT) without human intervention.


In the last 12-24 months Device Authority have signed agreements for their patent-protected solutions with a significant number of IT/internet security giants e.g. Amazon (for AWS), Microsoft (for Azure), Thales/Gemalto, Comodo etc.

Tern have traded as low as 1.75p in the past 12 months before reaching a high of 27p much more recently now they're fully funded, before retracing to close around 21p on Friday.

Their AIM quote and sub £50 million mkt cap means they'll be off the radar of most private investors and funds, but their prospects seem vast not least if one of Device Authority's larger partners decides it wants their technology for itself.

I've invested recently at an average of just under 10p.


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