Tech will bounce back faster than ‘older’ sectors, says Alex Waislitz
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One of Australia’s most well known investors, Alex Waislitz, believes the tech sector could be better placed for a rebound than it’s “old economy peers”.
In a shareholder update, he thinks the tech sector will benefit as the world changes due to both government imposition and the personal drive of entrepreneurs.
“The restrictions that most countries around the world have imposed on their people and economies will accelerate many of the new technology trends that were evident before the pandemic,” he said.
“And these extraordinary times themselves will give birth to new technology heroes.
“This is indeed a dangerous time, but it is also a time of great opportunity. We have been investing in tech for more than two decades and believe nothing will stop the ongoing technology revolution sweeping the world.”
Waislitz insisted he was not calling the bottom of the market. But he thinks some of his stocks were reaping the benefits of what the world post-COVID 19 may look like.
One was X-ray tech play Micro-X (ASX:MX1) which only this morning surged 36 per cent with news it had received $3.6 million in orders since February.
Two others were Genetic Signatures (ASX:GSS), which has risen from making COVID-19 detection kits and Mesoblast (ASX:MSB), which is undertaking a stem cell trial to see if it could be a treatment or cure for COVID-19.
In relation to the latter stock, Waislitz declared that if Mesoblast is successful it could be “a game changer for the way the whole world deals with the virus”.
However, Waislitz warned that companies must be “rigorously efficient” in their cash flow management.
“Start up companies without significant cash flow are especially exposed,” he declared.
“There will be casualties but I believe the TEK [Thorney Opportunities] portfolio is better placed than many to not only survive for the long term but to prosper.”
Some of his investments had raised capital in recent weeks and he said he had taken the opportunity to top up holdings. He named telecommunications play Dubber (ASX:DUB) and online travel agent Webjet (ASX:WEB) as two such stocks.