Aussie tech
Software
A lot of the software and services companies (some of the Aussie tech sector) have de-rated, but, still trade at or near 10 times sales. ALU, WTC, NXT, XRO, these are all great companies, but this is also still Sun Microsystems territory.
The only call to action here is to avoid these names, in our view.
Consumer tech
Should we get the much-feared housing slowdown debt-deleveraging apocalypse, thanks to globally tighter rates but specifically our own sensitivity to higher mortgage rates, it will be fascinating to see what happens to Domain, Realestate.com, and to a lesser extent Carsales earnings.
It took a pandemic to dent them, and, I think it unclear how resilient they will be to a more “garden variety” cause for a sales slowdown.
I guess our call to action here is a little similar to the above points re: tech, for us, not at these prices.
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