Member Info for nbe22

SP hit 1415 today - just 3 points off the ATH from January.

Looks like SMT bought some of the dip (presumably using some of its £200mil of gearing loans) as it is bouncing on the rising market.

SMT held up well in the last few days of volatility. Barely dipped below 1365 and only briefly. Now back up to 1389. From the highs last Friday of 1405.

The portfolio is strong.

I think the reason SMT pushed over 1405 yesterday was because Ginkgo finally went public via a SPAC merger (not IPO).

I wonder if SMT will hold on to its stock in Ginkgo.

A few weeks ago I placed a support level at 1300, I'm now revising that up to 1335. It stood up well to the last few days of market volatility.

The NAV was at a ATH this week actually. SP been on discount for months now so didn't quite hit ATH.

Gearing is fine and the rates they secured are very low. There are so many growth opportunities right now and getting into their Series A or B rounds with this money will prove to be excellent decisions within less than 5 years.

I think it was a reaction to the ongoing global central bank sentiment to let inflation run hot until at least the end of the year.

Yup. He is right it is largely noise. Tencent et al aren't going anywhere. All that has happened is that China's govt has made clear that they cannot make up their own rules. Which is a bit of a "well duh" really. Private tutoring sector was inevitably going to be hit hard eventually in China because it conflicts with well-known principles of an authoritarian regime that needs to control the hearts and minds of their citizens. Investing in that sector, in China, was always a very risky play which is probably why - I hope - SMT had stayed well away from it.

SMT is only down 1.7pc as of right now - that's nothing. Only weeks ago SMT was in the 1100 and 1200s. The fact it is seemingly building a support level around 1300 is very good and nothing to be downcast about.

Yes many China funds fell because of a clamp down on online tutoring/education platforms. As far as I know SMT is not exposed to any such online tutoring investments in China so this pull back seems to be very much a collateral damage from the market shock.

I think it's because of what happened to Didi in China?

Personally I would reduce or cut your other BG holdings but double down on SMT.

Not necessarily a bad thing to buy ones own shares. It stabilises the share price - can even increase it - and effectively means existing shareholders have increased their holding. This may be a very wise move by SMT because once all the inflation BS has died down in another year or so - market sentiment will cycle back onto tech and growth stocks again and at that point SMT will be trading at a consistent premium again and then it can sell those shares back at market value which will certainly be a profit. That then translates into % gains YoY for shareholders - which then inspires yet more investors to take a punt, or existing shareholders to double down.

Share "buy backs" will be a growing theme this year - and not just in successful investment trusts. Pretty much every cash-rich corporation will be doing it. It is the key to stabilising high a P/E ratio and bringing it back down to a more sustainable figure which the market is happy with.

Yeah if anything it should be more than 50k. Why should you be on the board if they can't spare 50k or so?

Noticed they've done a few more buy backs in recent days. Didn't think the discount had got too wide for a couple weeks - wondering what the reason is?

I personally think the best days of SMT are still ahead of it. The digital transformation of the global economy is only in its first baby steps.

Why would you put yourself in a position where you have to sell high-beta growth stock at inopportune timings?

Buying dips with the intention to hold the stock for 10+ years is not day trading. It's bargain hunting.

I bought at 1089 last week ;-)

It's that scary inflation monster spooking the markets again.