I continue to adjust my portfolio after getting the latest numbers from my new spreadsheets for my next decade’s portfolio. If you have been reading my blog, you would have known that I have sold quite a bit over the past month – Sold iFAST, Sold Metro Holdings (CPF), Trimming my holdings.
And the selling continues today as I would like to shift more funds to the US market. As such, I have partially sold Food Empire at $0.515 and HRnetGroup at $0.59 to realise a loss of about 20% each.
Last night, I also partially sold Booking Holdings at US$2077 to book a profit of about 10%. The fund was immediately deployed to purchase two counters – Illumina at US$300 and Zuora at US$14.6. I categorized both purchases as punts as I hardly understand their business and their extremely high PE or no PE for Zuora as it is still making a loss.
So why buy now?
From what I read, Illumina is a clear leader in providing DNA sequencing systems, so it should continue to do well in the next decade. However, it announced a weak Q2 results and its price dropped from a high of US$380 in June to a low of US$263 in September. The company beats the market consensus in the latest Q3 results and bounced back above US$300 recently. I decided to take this as an opportunity to own a very small stake.
Zuora belongs to one of the many SaaS companies. It is a leading cloud-based subscription management platform provider and has been growing in its topline but is still reporting a loss and burning cash. Similar to Illumina, its share price takes a beating in the first half of the year after a weaker guidance for the year due to teething problems. It seems that they have resolved some of the issues. That’s as far as I know about the company. So this is definitely a punt.