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Investing alongside you, Foolish investors, here’s a selection of listed companies that some of our contributors have bought over the past month!
Alphabet
What it does: Alphabet is the parent company of Google Search, Google Cloud, Android and YouTube.
By Ben McPoland. I recently bought shares from Alphabet (NASDAQ: GOOGL). The stock is the lowest as Google Search faces competition and a slowdown in digital advertising.
These concerns are valid, especially the competition from ChatGPT. At MicrosoftAI-powered chatbots provide answers without the need for endless pages of links. And those ad-monetized search pages remain the lifeblood of Google.
However, I doubt this a Netflix-disrupting-Blockbuster-Video situation. Google is a pioneer in AI, has $113bn in cash and the equivalent, and has created Bard, its own chatbot.
AI systems must be trained on large data sets. Imagine how much data Google has collected over the years through search, maps, Android, Gmail, YouTube, and more. The competitive edge in the AI space is very clear.
Some people think Amazon Echo will be dangerous for Google. Consumers will simply go through all these pages and ask/buy/order directly through Alexa. But it’s not dangerous. And I don’t think this situation either.
Ben McPoland has positions in Alphabet and Netflix.
Field Partners
What we do: Farmland Partners is a REIT that acquires and manages farmland properties in the US, with more than 160,000 acres on its books.
By Mark Tovey. I bought shares in it Field Partners (NYSE: FPI ) because fertile land can be a great hedge against inflation.
The amount of arable land per capita has decreased significantly over the last six decades and is expected to continue to decrease.
In addition, fertile soil has a negative relationship with S&P 500create a potential diversifier for your investment portfolio.
Farmland Partners recently issued a chilling growth forecast and warned of a potential sharp decline in operating earnings in 2023, sending its share price plunging 15% in a week. I see this wobble as a buying opportunity.
I have been watching this REIT since the Russian invasion of Ukraine, which caused panic in the agricultural market and a sharp rally in the share price of Farmland Partners. Now that the price has dropped again, I decided to put this REIT out of favor.
Mark Tovey owns shares in Farmland Partners.
Glencore
What we do: Glencore is one of the world’s largest natural resources companies with operations in 35 countries.
By Andrew Mackie. Since hitting an intra-day high of 584p back in January, the Glencore (LSE: GLEN) share price has fallen almost 20%. As a firm believer that we are in the early stages of the commodity bull market, I could not resist buying some more of its shares.
The change in the SHOP share price is 7.8%. However, this is not the main reason why I like the company.
Over the next seven years, total demand for copper is estimated to reach 355m tonnes, with 100m coming from the renewable energy market alone. However, total global copper production, both primary and recycled, will fall short of 50m tonnes. Eventually we faced a supply cliff.
Cheap fruits that are easily accessible are done. Mining for metals is extremely difficult these days. This brings many problems, including obtaining permits and licenses.
Glencore is in no rush to bring new supply online – at least not until the world screams. At that time, I believe the price of the metal will trade at many multiples of what it is now.
Andrew Mackie owns shares in Glencore.
Greencoat UK Wind
What it does: The fund invests in wind farms in the UK, generating enough energy to power 1.5m homes.
By Dr. James Fox. Amidst the current volatility, a heavily regulated market like energy generation looks pretty good. But that’s not the only reason I recently bought shares Greencoat UK Wind (LSE: UK).
The trust aims to provide investors with an annual dividend that rises in line with Retail Price Index (RPI) inflation. Currently the dividend yield sits at 5%, but will rise to around 13% – in line with inflation – this year. Dividends have increased 10 times in a row in line with RPI.
While Greencoat may be too focused on one geography and one type of technology, which can make it vulnerable to weather systems or regulatory changes, wind energy is very effective and profitable today.
Moving forward, technological advances should improve the efficiency of wind power, and I hope that the government will restart support for onshore wind farms – a cost-efficient way of generating power.
Dr James Fox has a stake in Greencoat UK Wind.
JD Wetherspoon
What it does: JD Wetherspoon operates a chain of pubs and a portfolio of hotels, mainly in the UK.
By Christopher Ruane. In recent years I have seen my share JD Wetherspoon (LSE: JDW) reduced its value. Over the past year, the stock has fallen by more than a quarter.
But I remain convinced that the company’s fundamental business model is attractive. Customer requests are back. With the total number of pubs falling, I think Spoons’ value proposition could mean increasing sales volumes in the coming years even as the general trend in the pub trade declines.
The stock is up 24% so far this year. I have bought more. I am hopeful that the interim results on March 24 will show the business increasing sales and making healthy profits again.
I see the risk, such as inflation eating into the profits. But with a historically proven business model, strong customer demand and a unique proposition, I think the business has long-term potential that is unimaginable at its current share price.
Christopher Ruane owns shares in JD Wetherspoon.
Marks and Spencer
What we do: Marks and Spencer is one of the UK’s oldest retailers. Specializing in selling premium food products, apparel, beauty, and home products.
By John Choong. Despite a 45% decrease last year, Marks and Spencer (LSE:MKS) has been one of the biggest winners on the FTSE in 2023 so far. The retailer’s stock has made a remarkable recovery from October’s lows, jumping 65% – and it’s no surprise why.
To defy the doom and gloom portrayed by City analysts, M&S has bucked the trend of many of its peers. Inflation may be hot, but the company’s best value proposition and wealthiest customers have benefited during this trying period. In fact, Marks and Spencer is witnessing an increase in sales, sales and even an increase in market share in 2022.
Additionally, the company’s future is bright, as it continues to roll out leaner stores with an improved omnichannel experience. And with a price-to-earnings (P/E) ratio of 9.9, a price-to-sales (P/S) ratio of 0.3, and a price-to-book (P/B) ratio of 1.0, I believe the stock. still incredibly cheap when taking really exciting, long-term growth into account.
John Choong owns shares in Marks and Spencer.
Moneysupermarket.com
What we do: Moneysupermarket.com operates a price comparison website and other services such as MoneySavingExpert.
By Roland Head. I bought shares in it Moneysupermarket.com (LSE: MONY) in February, after the company published its 2022 results.
Last year’s accounts indicated that revenue would rise by 22% to £387.6m in 2022, as demand for personal finance and travel-related products recovers after the pandemic.
Pre-tax profits for 2022 rose 33% to £69.3m. That’s a solid improvement, although it’s still a long way from the £95m peak profit it reported in 2019.
My main concern is that I’m not sure there’s much growth in the price comparison business, which is pretty mature now.
Even so, last year’s numbers show that the company is still profitable and generating plenty of cash. Although the dividend was held unchanged at 11.7p, broker forecasts suggest payouts will increase this year.
After last year’s encouraging performance, I’m happy to collect a 4.9% dividend yield while seeing what CEO Peter Duffy can achieve.
Roland Head owns shares in Moneysupermarket.com.
Nvidia
What it does: Nvidia is a designer of graphics processing units for computers with increasing artificial intelligence capabilities.
By Charlie Carman. Nvidia (NASDAQ:NVDA) is the seventh largest company in the world with a market capitalization of around $570bn. The share price has grown rapidly in recent years.
Despite the high price-to-earnings ratio of 131.7, I bought shares in the business because I am confident about its long-term growth prospects for three main reasons.
First, Nvidia dominates the discrete graphics processing unit (GPU) market, claiming an 88% share. Macroeconomic headwinds hurt sales last year, but I believe the long-term demand outlook for the dedicated gaming PC market remains bright.
Second, Nvidia HP100 GPUs have potentially lucrative applications in the artificial intelligence (AI) arena. Offering a huge increase in computing performance, the demand for this market-leading product could increase due to the adoption of AI-like chatbots ChatGPT become more widespread.
Third, the company’s new AI cloud service Cloud DGX helps to diversify the revenue stream. This innovative solution is another string to Nvidia’s bow.
Charlie Carman has a position in Nvidia.
Record
What we do: Record primarily manages currency risk for institutional clients but also manages more assets for returns for customers.
By James J. McCombie. Record (LSE:REC) has grown sales by an average of 8.9% over the past five years. Average operating margin is around 30%, and return on equity is around 40%. The company’s balance sheet is strong, and its liquidity position is excellent. In the most recent quarter, it reported that assets under management increased by 6%. Growth in assets under management (AUM) increases management fees. In addition, the cost of performance has returned that boost lower.
The traditional business of currency management appears healthy. Records have also begun to offer clients more products. Excess capital was also diverted to investments in early-stage companies last year. This should help boost AUM in the long run and indeed returns. But the move has resulted in a higher risk profile of the operation. However, I am happy to have bought what I think is a quality stock with growth potential this month.
James J. McCombie has shares in the Record.
Scottish Mortgage Investment Trust
What we do: FTSE 100 listed Scottish Mortgage Investment Trust invests in ‘disruptive’ public and private growth companies from around the world.
By Paul Summers: Call me greedy for punishment but I keep adding money Scottish Mortgage Investment Trust (LSE: SMT) every month.
Until now, it still bears fruit. As I type, the stock is down 6% in 2023 simply because of ongoing market jitters about the direction of interest rates.
Still, I think this persistence will pay off in due course. Of course no one is suggesting the prospect of ownership as such Tesla, ASML and Modern worse than before.
But what’s most interesting about Scottish Mortgage today is that its shares are currently trading at a significant discount to net asset value. In other words, the price I paid was less than the value of the investment.
It’s always dark before the dawn but I quietly believe we will see the end in 2023. Maybe.
Paul Summers owns shares in Scottish Mortgage Investment Trust
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