Green predicts TMT rally, buys Marconi...


Experienced member
Very interesting...Andrew Green, the fund manager who is known with his under exposure to TMT stocks, usually referred to as a contrarian, with his opposite view of being sceptical of the TMT bubble from many of others in similar positions usually "goes into deeply discounted value stocks where the very long-term has been negative, ie the last 20 to 30 years, yet he has seen something indicating a very high probability of a turnaround."

Green "tends to invest only in companies that have been suffering severely but have a strong balance sheet. He has two chances here. Either they will recover and prosper, or often they only need to show a flicker of life and the vultures will be in there to take them over..."

He is now predicting a TMT rally, "Despite the nightmare of the TMT market over the past 18 months, it is likely that the bottom has been seen in the short term and a decent rally could soon ensue...The fund has selectively been adding to positions, taking profits from some of the more defensive stocks such as breweries and healthcare." he said in the newsletter...

He adds that he has also recently bought a stake in troubled telecoms equipment manufacturer Marconi..."It still has a great name and a decent balance sheet. The price has been slashed to ribbons, but there are long-term prospects," he says.

Worth to note how the 2 funds that he manages has performed so far: Global Asset Management UK Diversified [F1:GLUKDA] is the best performing fund out of 285 in the UK All Companies sector over the last year, returning a healthy 18 percent in testing market conditions.
The St James Place Recovery fund [F1:BPRA] is No.1 in the 150-strong Global Growth sector, eking out 13.3 percent over the past 12 months, according to figures from Standard & Poor's.

Hmm, certainly a contrarian...

Here is the link to the full article, enjoy :)

Green thinks Marconi has a decent Balance Sheet?

Well It has about 90% of NAV = Goodwill on acquisitions..

Hate to see what he thinks of as a bad Balance Sheet
Shares on the move : Share risers
03/09/2001 09:10:46

 Fax = 020-7842-9321
Marconi 54 1 2
 Gains in the wake of Sunday Business
report that the firm will shelve plans
for a #250m R&D facility. Breakingviews
says: "Marconi (MONI.L) has kept
plunging throughout the summer months.
That's not surprising. No option for
repairing its balance sheet -
disposals, a rights issue or selling
the company - is attractive."

0810 GMT Sep 03 2001

For a change it stopped falling and ended the day up +1 at 54...

48p after disastrous news

which was 100% predictable.

Now will they go into receivership or not?
That is the key question.. for the next 2 years.

Mr Green cannot read a Balance Sheet I think!