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Why is it selling off and what do you know tht others with more money dont?
Love to Don’t have any more dosh though
this is the time to buy SPT, trading update next week,
This doesn't help https://www.z2data.com/insights/semiconductor-price-increases-2021
Shortages are a double whammy. SPT impacted with their own products and end users of SPT test products/ststems delaying orders if they can't source IC's too. Someone is reducing and there is usually a good reason.
Chip shortages - you may prove to be right but is it really news. There have been chip shortage stories for the last 10 months or more so why is it relevant now suddenly?
More likely caught in the tech sell off .
I am assuming a rosy outlook and confirmation that the y/e finished as forecast. and a chunky dividend / special once again.
Either way I will buy the dip and reduce into the rise.
Chip shortages are creating havoc and that might be happening here too. Something is causing someone to sell down.
I would say be more open to reading into the wider market. What is SPT share correlated too? Outside of themselves and earnings.
Example: TSM (Taiwan Semiconductor Manufacturers) jumped 8% on solid results today. That’s currently at a 1Y high. I think given the semi conductor/chip big boys (like TSM) are now all time highs, we and other chip dependant stocks should see a bounce up. Look at Rio Tinto, dependant on Copper prices, copper prices have gone up, and low and behold so has Rio Tinto share prices.
Another decent metric is that the RSI (relative strength index) of SPT currently sits at 23. Which shows it’s far into over-sold territory.
My food for thought.
I've continued to add - there must however be a fund reducing their holding here.
Despite massive buys going through, the share price keeps dropping, so someone has shares to sell at these daft prices.
I'm hoping for an RNS update soon, that whoever the seller is has finally closed their position.
I just keep adding.
Like Wood Group today , all it takes is a change in sentiment to soar.
Can happen any day, out of nowhere.
Chip shortages?
I am amazed with the SP too. An acquisition in March last year, no debt, a leader in 5G technology, dividends, and going back to broker ratings since 2015 not ONE single sell recommendation. In fact the latest 3 are buys at prices that follows. Canaccord 3.20 Berenberg 4.30 and Numis 3.10. So unless i am missing something here which i would be very happy for someone to explain me. What is there not to like about this stock ?
Yeah I’ve just topped up likewise. My view is similar, however I think given the clients they have and their 5G specialisation at this price they are a no brainier. Albeit 5G might not be widely used currently, I’d rather be on the early bird. Short term I am not expecting much, but long term this feels strong, see them as an acquisition target if this continues.
Added more £2.495 - the year end trading update should be out next week.
Last year SPT low price was £2.28 and business has grown both through acquisition and organic growth by c10%
No debt, cash rich. Hopefully dividends will keep on coming!
Only risk is H2 slowdown caused by inflation and move away from high rated tech stocks to banks etc IMO.
Will they be hit by chip shortages like some of the automotive and industrial shares.
Also added more this morning on the drop - its just traders selling off the Nasdaq stocks due to fears of earlier interest rate rises impacting significantly higher rated stocks in US than in UK. I expect tech stocks will be back in favour in a week or so...
Just the herd stampeding around...
Topped up another tranche, will do it all the way down to 225 again if necessary but feel a near term bottom is in for a bounce back to 280-300 when the results are in.
Will hold for dividends if a tradeable bounce does not come to fruition.
SPT always a winner.
Guess I will top up during this phase of weakness. I see them as a takeover target as well. Might wait a little as all tech shares are being punished at the moment. .. Nasdaq down 2.75% as I write
Added 266.7p
Surely this will be a takeover target this year if the price doesn't break through the 300p barrier?
oops Chamer - need contacts in.
Charmer
Quiet board but yes I am still invested, averaging down and buying dips.
I have topped up today as there will be a dividend & maybe another special announce with the final results and potential spike ahead of these.
Who knows but the lower it goes the more I add - my snooker rack 1 2 3 4 = 10 on each drop.
Works well and requires patience but been starting to buy back my my 297 291 285 sales from Sep Oct & Nov.
DYOR
@chard1980 thanks for your reply. My view is the market simply isn’t prepared to wait for this share to take off. By 2024 when the 5g market is expected to have taken off … maybe
I think it’s a slow burner likely to suddenly catch fire when the appetite returns sometime between now and 2024. It’s hard to be that patient I guess
Chamer, I was in the same position and sold 2 months ago. Watching closely and tempted to buy back in but other plays seem more inviting.
I’ve been an investor for a couple of years but have to say waiting for this to take off is testing to say the least. Why has this dropped 10% plus to 268 when tech shares in general are unaffected by covid? It’s said Spirent are in a growing market for 5g network testing and sit on a reasonable forward pe of 20. Jeffries price target of 340p is a long way off. I am trying to decide whether to top up or get out and invest elsewhere. What do you fellow investors make of the recent weakness and failure to break the 300p barrier?
Adding again, at this level and below. Tranche 1.