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Shailesh Dash

Taking stock: Tech focus

Sunset in the mountains

A look at the 2021 first-half performance of some of the stocks recommended by entrepreneur and investor Shailesh Dash, who shares his perspective in this monthly column.

Given the importance of investing for the long term in the current market environment, we had recommended 26 stocks since March 2020 to capitalize on strong fundamentals and robust growth. Last month, we had looked at two sub-sectors within the technology space – health tech and MedTech, as well as fintech – to understand their performance during the first half of the year. Now we analyze three additional segments to see how they fared. 5G: The prices of 5G recommended stocks witnessed downward pressure in Q1 2021 with an average decline of 6.7 percent. However, the stocks recovered in Q2 with gains of 9.6 percent to continue the positive performance in H1. Within the recommended stocks in the 5G sector, Lumentum was the only stock to record a drop of 13.8 percent in the first half of the year, which can be attributed to a continued delay in 5G deployment in China. Gaming: The recommended gaming stocks were the best performing index within the selected universe with a gain of 10.2 percent in H1. Nvidia was the top performer with gains of 52.1 percent in H1. The outperformance was broadly driven by an 84 percent rise in revenues year-on-year in Q1. Cloud computing: The recommended stocks within cloud computing were the worst performing with a drop of 10.3 percent in the first six months of the year, with the underperformance attributed to realizing part of the gains to move into other cyclical stocks. However, we believe that the fundamentals of cloud-based companies continue to remain robust and the pullback offers an opportunity for investors to accumulate companies within this space to align with the changing economic landscape.


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