OUR GUEST SHANA SICILY CHIEF
INVESTMENT OFFICER OF OR ITS
SPOTLIGHT
ASSET GROUP SHANA SO GREAT TO
HAVE YOU ON THIS MORNING
YESTERDAY REALLY BIG SELL OFF.
WHAT DO YOU ATTRIBUTE IT TO.
>> I THINK THE RISE IN COVID
CASES ACROSS THE U.S. AND
ACROSS
THE GLOBE WHICH IS LED TO
INCREASED LOCKDOWN ACTIVITY,
ESPECIALLY OVERSEAS IN
THE EU HAS PEOPLE A LITTLE
CONCERNED ABOUT THE ECONOMIC
IMPACT.
>> AND THE WAY THAT
THAT WILL FACT BE REBOUND THAT
WE'VE SEEN IN THE GLOBAL
ECONOMY, THE VICT.
>> IT'S ON THE RISE AS WELL
HOW LONG.
>> DO YOU THINK THIS VOLATILITY
IS GOING TO LAST.
>> I THINK THIS IS GOING TO
LAST THROUGH THE END OF THE
YEAR THERE ARE SO MANY THINGS
COMING UP IN THE
NEWS CYCLE. NOT FOR IT NOT THE
LEAST OF WHICH IS THE U.S.
PRESIDENTIAL ELECTION THAT WILL
CONTINUE TO HIM PACKED INVESTOR
SENTIMENT AND THESE TYPES OF
NEWS ITEMS.
DEFINITELY GOING TO PUSH
VOLATILITY HIGHER. THIS IS
ACTUALLY GOOD FOR INVESTORS WHO
ARE LOOKING FOR ENTRY POINTS
INTO SOME OF THE AREAS OF THE
MARKET THAT HAVE
DONE WELL LIKE TECHNOLOGY LIKE
COMMUNICATION SERVICES TO BE
ABLE TO GET IN IT MORE
ATTRACTIVE MULTIPLES. BUT I
EXPECT VOLATILITY TO LAST
THROUGH THE END OF
THE YEAR.
>> FOR SURE I KNOW IT IS A GOOD
WHEN THERE'S A PULLBACK I GUESS
IT'S A POTENTIAL
BUYING OPPORTUNITY WHERE WOULD
YOU PUT YOUR MONEY RIGHT NOW.
>> WE CONTINUE TO BELIEVE THAT
TECHNOLOGY AND COMMUNICATION
SERVICES ARE AREAS THAT ARE
VERY ATTRACTIVE FOR INVESTORS
DESPITE THE FACT THAT THEY HAD
GREAT MOMENTUM SINCE THE BOTTOM
IN MARCH. WE CONTINUE TO
BELIEVE THAT THOSE ARE AREAS
THAT WILL CONTINUE TO DO WELL
REGARDLESS OF WHAT HAPPENS WITH
THE PANDEMIC WE NOW KNOW
THAT THIS PANDEMIC IS GOING TO
LAST LONGER THAN
ORIGINALLY ANTICIPATED. THESE
ARE AREAS OF THE MARKET THAT
WILL BENEFIT FROM THE TAILWINDS
INVOLVED IN HAVING REMOTE WORK
ENVIRONMENTS THINGS BECOMING
MORE AND MORE
TECHNOLOGY DRIVEN TO KEEP
BUSINESSES WORKING IN TO KEEP
EMPLOYEES CONNECTED AND WHEN
YOU LOOK AT VALUATIONS WHICH
IS PENDING BIG BIG NEGATIVE
AGAINST THESE AREAS OF THE
MARKETS, MOST PEOPLE FOCUS ON
THINGS LIKE PRICE TO EARNINGS
BUT IN A LOT GROWTH SLOW
GROWTH ENVIRONMENT WITH LOW
RATES ARE THE FOCUS
REALLY SHOULD BE MORE ON THE
CASH FLOW METRICS AND FROM OUR
FREE CASH FLOW STANDPOINT,
THESE COMPANIES ARE ACTUALLY
LESS EXPENSIVE THAN THE MARKET
AS A WHOLE
AND THEN WHEN YOU LOOK AT
SOMETHING LIKE THE PEG RATIO
WHICH IS PRICE TO EARNINGS
INCUR LOOTING THE FORWARD
GROWTH EXPECTATIONS. THESE
COMPANIES ARE MUCH CHEAPER THAN
THE
MARKET SO FROM A VALUATION
PERSPECTIVE. IT'S A MIXED STORY
BUT THE TAILWINDS DEFINITELY
BENEFIT THOSE SECTORS IN
THE MARKET.
>> YOUR HYPER FOCUSSED ON THE
SEMICONDUCTOR SPACE STOCKS LIKE
THE VIDEO AND BEYOND OR
WATCH LIST. WHAT DO YOU THINK
OF AMD'S DECISION TO IT'S.
AXING LINKS IN A 35 BILLION
DOLLAR ALL-STOCK THIS PUSH FOR
AND THE DATA CENTER MARKET AND
THE STOCK DOWN ON THE NEWS.
>> ANY TIME YOU
SEE IN A COMPANY ACQUIRING
ANOTHER COMPANY
THE ACQUIRER USUALLY GOES DOWN.
THAT'S MERGER ACQUISITION
ARBITRAGE THE COMPANY BEING A
AND USUALLY GOES UP THE COMPANY
DOING THE ACQUIRING USUALLY
GOES DOWN. THAT'S
FAIRLY COMMON AND NOT
UNEXPECTED AND TERMS WHAT I
THINK OF THE DEAL IS I THINK
AMD
SEASON OFF TO HEAR TO MAYBE PUT
THEIR FOOT ON THE NECK OF THEIR
BIGGEST RIVAL AND IN TOW.
AND IT'S JUST TAKING ADVANTAGE
OF A SITUATION
WHERE THEY REALLY CAN'T TAKE
MORE SHARE FROM INTEL AT THIS
POINT AS INTEL'S STRUGGLING TO
CONTINUE TO KEEP UP WITH THINGS
LIKE
DATA CENTERS. FROM THAT
PERSPECTIVE SO I ACTUALLY THINK
THAT THIS IS PROBABLY A GOOD
THING FOR AND THE LONG TERM IN
TERMS OF BEING ABLE TO TAKE
MARKET SHARE.
>> WHY DO YOU THINK THE
SEMICONDUCTOR IS A PLACE OF
OPPORTUNITY RIGHT NOW.
>> WELL BECAUSE I THINK THAT IS
BENEFITING FROM CURRENT AND
FUTURE TRENDS SO FROM
CURRENT TRENDS COME IN LIKE A
NEW VIDEO WHICH NOT IT ONLY
TAKES ADVANTAGE OF THE
GAMING MARKET WHICH IS ONE HUGE
DURING THE PANDEMIC HAS GAMING
HAS BECOME A SOURCE
OF LEISURE FOR A LOT OF MEN AND
TEENAGE BOYS IN YOU KNOW NOT TO
LEAVE OUT THE WOMEN I I
FOR ONE. ENJOY AN VIDEO
GAME BUT IT'S A COMPANY THAT IS
BENEFITING FROM A CURRENT
TREND. BUT IT IS ALSO A HUGE
COMPONENT IN THE
USE OF AUTONOMOUS VEHICLES AND
THINGS THAT ARE FUTURE. IT
GROWTH OPPORTUNITIES AND
AND THAT'S WHY SOME NEWS IN
GENERAL HAVE IN MY OPINION A
LOT OF ROOM TO RUN AND AS I
MENTIONED EARLIER FROM A PRICE
TO FREE CASH FLOW IN FROM A PEN
PERSPECTIVE THERE
ACTUALLY UNDERVALUED WHEN YOU
COMPARE TO THE BROADER S AND P
500.
>> JUST BACK TO TO COVID AGAIN.
>> AND IN YESTERDAY'S WE'RE NOT
AT ANY WE'RE NOT REALLY NEAR
THEM ARE.
>> LEVELS DO YOU THINK THOUGH
IF CASES CONTINUE
TO COME.
>> AND IF THERE IS SHUTDOWNS
AND IN CERTAIN PLACES IN
THIS COUNTRY. DO EXPECT THAT
END PRETEND, THEN YOU COULD
THROW IN POTENTIALLY SOME A LOT
OF POLITICAL UNCERTAINTY.
DO YOU THINK THAT WE MIGHT TEST
THOSE LOWS AGAIN.
>> IS THE NUMBER OF NEW CASES
FOR SURE THAT
IS CONCERNING BUT WHAT WE
SHOULD BE FOCUSED ON AS
HOSPITALIZATIONS AND ICU AND
LATER
AND DEATHS AND DESPITE THE FACT
THAT WE HAVE SEEN
COVID CASES ON THE RISE AND IN
MANY CASES BOTH HERE AND ABROAD
REACHING RECORD LEVELS WE HAVE
SEEN MUCH
LOWER RATES OF HOSPITALIZATION
AND DEATH THAT'S NOT TO SAY
THAT THOSE NUMBERS ARE
NOT CONCERNING AND THAT WE
SHOULDN'T TAKE MEASURES TO TRY
TO CONTROL. THE DISTRESS AND
OUR RESOURCES. BUT AS LONG
AS WE CONTINUE TO MAKE PROGRESS
IN BOTH THE VACCINE IN THE
TREATMENT OF
THE VIRUS. THE NUMBER OF CASES
IS LESS CONCERNING THE
BIGGER CONCERN IS THE BLUNT
INSTRUMENT BEING USED OF
LOCKDOWNS THE W H O ACTUALLY
CAME
OUT AGAINST LOCKDOWNS BECAUSE
OF THE UNINTENDED
ECONOMIC CONSEQUENCES AND I
HEALTH CONDITIONS IN HEALTH
CONSEQUENCES OUTSIDE OF THE
VIRUS. HOWEVER THAT
MANY COUNTRIES INCLUDING OUR
OWN ARE STILL USING TARGETED
LOCKDOWNS IN IN SOME COUNTRIES
LIKE IRELAND. MEASURES IN ORDER
TO CONTROL
THE SPREAD THAT'S CONCERNING
BUT I DO KNOW FOLKS RECAST THE
MARCH LOWS. I THINK WE HAVE A
BETTER IDEA THAT
THE VIRUS IN THESE THESE THESE
TACTICS FOR MITIGATING THE
VIRUS. I'M GOING TO HAVE AS
NEGATIVE AN IMPACT
ON EARNINGS AS WE ANTICIPATED
BACK
IN MARCH.
>> AND JUST ANY THOUGHTS ON THE
COMING ELECTION WHICH IS KIND
OF HANGING OVER EVERYTHING IT'S
A WEEK AWAY.
IF THERE IS NO DISSENT IF WE
DON'T GET A RESULT ON ELECTION
NIGHT HOW DOES THAT CHANGE
THINGS JUST THAT HOW DO YOU
POSITION YOURSELF AHEAD OF SO
MUCH UNCERTAINTY.
>> I THINK YOU CAN EXPECT SOME
VOLATILITY FOLLOWING THE ELECT
AN AND I THINK WE SHOULD DO
THAT AS AN OPPORTUNITY AS
INVESTORS. I THINK THAT WE
SPENT A LOT OF TIME
I WORRY ABOUT ELECTION
OUTCOMES. BUT I THINK IT'S NOT
SO MUCH WHO WINS THE ELECTION
BUT HOW IT PLAYS OUT
IF IT IS A CONTESTED ELECTION
THAT COULD BE CONCERNING
THE MARK LIKE CERTAINTY AND
UNCERTAINTY IS GENERALLY NOT
GREAT FOR ACT, BUT HE'S
BUT ALSO THE RISK THAT THE
CURRENT PRESIDENT IT MAY NOT
LEAVE OFFICE WILLINGLY IF IT IS
A CLOSER HE MAY NOT CONCEDE HE
HAS THREATENED. I WOULD ALSO BE
A RISK NOW I ACTUALLY THINK
THAT IT'S GOING TO BE A MORE
DECISIVE
ELECTION DECISION ONE WAY OR
THAN PEOPLE MIGHT BE
ANTICIPATING AND GENERALLY
SPEAKING. ELECTION
RESULTS WHEN THEY ARE FOR A
POSITIVE FOR DEMOCRATS OR
REPUBLICANS
ARE GENERALLY POSITIVE FOR THE
MARKET IF YOU LOOK BACK THROUGH
HISTORY. THE MARKETS GENERALLY
HAVE POSITIVE RETURNS FOLLOWING
AN ELECTION JUST BECAUSE
INVESTORS IN MARKET
PARTICIPANTS REALLY LIKE HAVING
THE CLARITY OF KNOWING WHAT THE
NEXT ADMINISTRATION
LOOKS LIKE.
>> IN TERMS OF THEIR POLICIES
AT AS IT PERTAINS TO TO