Tech stock alert: seduction or value?
Tech stocks have a reputation for seducing investors. In the last subscriber-only white paper for 2013, find out which tech stocks are Montgomery investment grade.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
Murray Allibone
:
Hi Roger, I note in your report your comment that “Montgomery Investment Management values IRESS at around $8.50 per share”. Given Skaffold currently shows IRESS IV at about $5, and IV only rises to about $6 in 2015 I am curious as to why the discrepancy. Would appreciate your insight.
Roger Montgomery
:
Simply not relying on consensus. Roll your mouse over the chart and you will see valuation estimates based on bullish and bearish analyst forecasts.
Murray Allibone
:
Roger, thanks for your reply. I see that the bullish IV is currently sitting at just $6.42, significantly lower than your valuation of $8.50. What am I missing?
John Cohen
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Any thoughts on RXP Services (RXP)? They seem to have a number of ex-SMS (SMX) personnel working for them, and I would hazard a guess that there would be a number of RXP clients that were once clients of SMS M&T (SMX). SMS seems to be a shrinking company, while RXP appears to be a growing company, albiet mostly through acquisition. Both are in the same sector as IRE, but in the case of RXP, are not well covered due to their small size (to date). Perhaps a future gem in this space? Also, SMX? Any views?
Jim Smith
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Is your recommendation of SIV still valid?
Roger Montgomery
:
Hi Jim,
We don’t offer any recommendations and we may change our view at any time and without informing you of that change. SO please don’t try to trade or invest on the back of what we say. You must seek and take personal professional advice and satisfy yourself that you completely and comprehensively understand what you are doing.
david klumpp
:
Aren’t there other investment grade tech stocks, besides Iress? For example, I have noticed IRI Integrated Research is a successful Australian company involved in world class development of software for business. And it seems to have the attributes of a quality company. Be interested to hear your views on it Roger.
Roger Montgomery
:
OK. Will keep that in mind for a future post.
gary briton
:
unable to load report. Is anyone else having this problem?