Q: KXS has had a good run lately. In terms of valuation LMN looks much cheaper. I was thinking I would take some profit and buy LMN. What do you think? T Stephen
5i Research Answer:
If we look only at P/E as a metric, then LMN is more expensive, but not significantly so. YTD returns for both are about exactly the same in the 13% range. LMN is about 2X larger. We would be OK with a partial sale of KXS for LMN for diversification. We would see LMN as a slow-and-steady type of tech name. KXS certainly has been more volatile but is finally starting to act better.