US tech trade ideas

[Guest tech_chris]

Here's some of my current trades in US tech companies (my specialty). Target holding time is 12 months.

 

Do your own research, but here's a brief intro to each.

 

AAOI - Very oversold optical company. PE < 10, strong earnings growth. One poor quarter due to mistiming of technology transition from a large customer. Originally bought at $30, sold around $100 and back in again now at $35. What a gift

 

YRD - Chinese loan company. Good tech, very strong growth and low PE. Expect continued growth as regulations change eliminating smaller players and the company should be re-rated over the next 12 months. Entered at $43.30

 

TTD - Ad tech company absolutely killing it. Fantastic business model, strong growth, huge / expanding market. High PE ratio on current earnings, however this is a buy and hold for 5 years kind of deal. Entered at $48.70.

 

CSPI - Low float, steady base of earnings, low PE. Recently transitioned into security products that is winning awards globally. Entered at $13.20.

 

MICT - Very small cap, so fairly speculative. Produces rugged devices. Backlog of $20m, market cap is $10m. Company is transitioning into profitability. Recently sold unprofitable part of business for the company's market cap. Entered at $1.25.

 

I focus on US tech companies, trading 20 last year for an average return of 45%. Biggest gains (90%+) were YY, UCTT, PNTR, NVMI, LRCX. I'm looking to share more of my trade ideas over the coming year in the hope they're useful for others.