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Want To Buy Tableau Software Or Splunk But Afraid Of Market Peaks? This Fund Manager Tells You How To Get In

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Paul Meeks, Saturna Capital growth equity portfolio manager and Director Institutional Investing, was on CNBC to discuss valuation of tech stocks and how investors can buy into big data analytics company like Tableau Software Inc (NYSE: DATA), and Splunk Inc (NASDAQ: SPLK).

Here is what he had to say.

Not A Bubble Exactly

"I don't think valuations in this sector, and I have been doing this a long long time, are as egregious as they were," Meeks began. "So, I wouldn't call this a bubble scenario, though I do think valuations particularly in some of the hottest themes – Internet of Things (IoT), big data analytics, cybersecurity, cloud – are a bit elevated."

He continued, "And so, when I take a look at the allocation that I'd recommend, if you look at the S&P 500, it's about 20 percent tech, you add another 200 basis points for telecommunications; you get to about a 22 percent weight. I'd be there or maybe even less. Not Overweighted here."

How To Get In?

Meeks was asked how investors can get into big data analytics stocks, which are currently soaring high. He replied, "You try to identify the themes and the themes change from time to time. I do like big data analytics; I was recently in Seattle with the management of Tableau Software. I'm waiting for that stock to come in."

"But a good example for this phenomenon is you put your leaders or at least the sustainable leaders on your watchlist and sooner or later even the top ranked names will have a slip. Last quarter Splunk, which I like very much, dropped 9 percent within three days after its first quarter report and it gave investors at least a glimmer of an opportunity to buy at that point," Meeks concluded.

 

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Posted-In: CNBC Paul Meeks Saturna Capital VetrMedia Trading Ideas