Monday, November 8, 2021

Tech Rebalance

NVDA compared to DJIA (black) & Technology Sector (green) from 10/15 - 11/08
Today I rebalanced the Technology segment due to some rocket growth in NVDA. When I mean rocket growth, I'm talking 41% after ~3 weeks of holding. Now trading at a 110x earnings, I feel comfortable taking some profits here and reallocating to some . . less wild evaluations. This is Dividend Town, not YOLO Town! 

With some of the profits, I've diversified into 10 shares of LRCX and 60 shares of APH. While both have experienced solid growth in the last 5 years, Lam Research comes with a more 'value-oriented' 20 P/E ratio and, 38% 5-year compound dividend growth rate and a Safe rating from SimplySafeDividends. Amphenol has a higher premium on earnings at 34, 15.7% 5-year CDGR and a Very Safe Dividend Safety rating. While I think the Semiconductor space has more room to grow, I think some diversification is healthy. 

So the moves today were as follows:

  • Sold 17 NVDA for $5.2K
  • Sold 200 CHS for $1.3K
  • Sold 187 AVT for $7.5K
  • Bought 10 LRCX for $6.1K
  • Bought 60 APH for $4.9K   

I'll take $2.9K net in cash to redeploy as I rebalance some of my other sectors according to my Dividend Town screener in the next few weeks.

I'll also hang onto 15 shares of NVDA at a cost basis of $218 a share. Despite the crazy P/E, they are still a top-notch company to hang onto for growth in the portfolio. 

No comments:

Post a Comment