With weak growth shown from crm , and being that I am already tech heavy, would it be advisable to sell crm to add to propel and Eqb ? Both growing much faster with much cheaper valuations ; but in banking sector instead of tech . However in the alternative banking sector which seems to be much higher growth than the traditional banks currently .
Thanks ,
Shane
While we cannot personalize responses, we consider CRM to be a high-quality name with a diversified portfolio of products, and the name has been around for quite some time. It is becoming a more shareholder-friendly company by announcing dividends and doing more buybacks, but we are fairly cautious of companies after earnings guidance warnings and large stock declines.
We think CRM can eventually recover, given its high-quality products and a likely shift in sentiment down the line, but we also really like the recent results from EQB, and feel that it is trading at a cheap valuation. We also like PRL as an even higher-growth name than EQB, but it is smaller and more risky. For a high-growth approach, that is slightly more conservative, we like EQB, for a high-growth, small-cap approach, we would be comfortable with a switch to PRL, while acknowledging that a stock like PRL can decline significantly and its market share can be taken by a larger player, whereas, CRM is more likely to have staying power in the long-term.