Quick Equity Thoughts
I received a number of emails, tweets and so forth regarding my last network posts. I am traveling to SFO this week and that means I will have some time to write a post or two. I was in a meeting this past week with a company who was presenting some technology to Plexxi regarding multi-flow commodity graph theory modeling of networks at scale. They did some really interesting work on the efficiencies of networks at scale and I plan to write up some of their work in a post for all the people who sent me emails about virtues of Valiant load balancing.
As for equities, I am long BSFT, ARUN (post the correction), ALLT (multiple), QQQQs and short TSYs and Gold. I have kept a number of HY credit funds. I am picking away a long tech portfolio post corrections. As a sales person who visits customers, I am slowly seeing improvements in a willingness to spend money on new technologies at the corporate level, but it is not go time. The real issue in being long tech stocks is the entry point. If you are not careful, you can have a portfolio position down 25-30% on any given day. I feel better buying tech equities on the long side after the multiple has contracted and expectations have been reset. Tech stocks appreciate because GMs are expanding and/or the revenues are growing. It is horrible to be on the other side of that trend which is why product cycles matter.