2.7.2022 According to our research, a number of megatrends are driving our future. Within these overarching themes are companies that are capable of exploiting these changes in technology, consumer preferences, demographics, and environmental sustainability. These changes can lead to significant increases in their total markets, earnings trajectories and market capitalizations. We believe Ciena is one of these companies.
Ciena (CIEN) – Ciena is a leading global provider of optical networking equipment and other telecom infrastructure. The company has a broad portfolio of optical transport equipment and is increasingly diversifying into more data-centric portions of the market. Ciena's customer base now includes over 600 customers in 25 countries. They include service providers, enterprises, cable multiple system operators (MSOs), and government organizations. (CIEN is 1.98% FFND portfolio as of 2/4/2022.)
1.24.2022 We expect a choppy market until the Fed’s path is set, but anticipate positive returns as we move into the second half of 2022, especially in small cap. We also believe the Fed is likely to reverse some tightening expectations as we move into 2023.
Definitions: QE quantitative easing is form of unconventional monetary policy in which a central bank purchases longer-term securities from the open market in order to increase the money supply and encourage lending and investment. QT quantitative tightening is a contractionary monetary policy applied by a central bank to decrease the amount of liquidity. PE price earnings ratio is the ratio for valuing a company that measures its current share price relative to its earnings per share (EPS). Stagflation is persistent high inflation combined with high unemployment and stagnant demand in a country’s economy.
Autodesk 2.46%, Celcius Holdings 2.58%, Splunk 3.17%, Tesla 12.21%, as percent FFND and did not hold Anheiser Busch, Apple, Amazon, Molson Coors, Monster, Netflix, Peleton, Red Bull as of 1/21/2022.
1.10.2022 We believe Quanta Services (PWR) works as a go-to “picks & shovels” as a potential pure play for domestic energy transmission infrastructure. A leading specialty construction services franchise, PWR fits our Climate Sustainability megatrend.