Tech Report
MY SENTIMENT
I'm feeling neutral about techs, and only somewhat bullish about the market.
TECHS
When I generate ideas on techs, I look at the following: IBM, MSFT, AAPL, DELL, HPQ, NVDA, INTC, SUNW. This provides me with some generalities. And yes, I know I could throw some more on there, but i just need a general trend in order to build an general idea about the sector. That said, I think any gains we are seeing in tech as of now are because of excellent earnings reporting in Q1. But overall most companies, meaning like 492 of the S&P 500 are reporting sluggish growth, and lower multiples because the economy is tapering. The other 8 - mainly bulge banks - are the ones reporting record highs or high expectation surpassing earnings. Right now I'm convinced that Private Equity, Venture Capital, and M&A deals are fueling the corporate environment. So where does that leave techs, not unscathed, but definitely not full participants. I think techs are going to be in line with general trends. Techs have matured, and the companies, valuations, and technology itself. Web 2.0 is a driving force in innovation. Mature companies like Intel, Apple, Oracle, IBM, etc... are still solid foundations. So no longer will techs sway as widely as the did at the millenium, but I don't think you are going to see huge leaps in bounds at least until the end of 2007, if not into 2008. The market corrected some a month ago, and now its time for the economy to "correct" if you will...or the market economy to clear...i don't think we'll see great things until after some of these issues have weeded themselves out. And that's my view on tech.
I'm feeling neutral about techs, and only somewhat bullish about the market.
TECHS
When I generate ideas on techs, I look at the following: IBM, MSFT, AAPL, DELL, HPQ, NVDA, INTC, SUNW. This provides me with some generalities. And yes, I know I could throw some more on there, but i just need a general trend in order to build an general idea about the sector. That said, I think any gains we are seeing in tech as of now are because of excellent earnings reporting in Q1. But overall most companies, meaning like 492 of the S&P 500 are reporting sluggish growth, and lower multiples because the economy is tapering. The other 8 - mainly bulge banks - are the ones reporting record highs or high expectation surpassing earnings. Right now I'm convinced that Private Equity, Venture Capital, and M&A deals are fueling the corporate environment. So where does that leave techs, not unscathed, but definitely not full participants. I think techs are going to be in line with general trends. Techs have matured, and the companies, valuations, and technology itself. Web 2.0 is a driving force in innovation. Mature companies like Intel, Apple, Oracle, IBM, etc... are still solid foundations. So no longer will techs sway as widely as the did at the millenium, but I don't think you are going to see huge leaps in bounds at least until the end of 2007, if not into 2008. The market corrected some a month ago, and now its time for the economy to "correct" if you will...or the market economy to clear...i don't think we'll see great things until after some of these issues have weeded themselves out. And that's my view on tech.
posted by Anonymous at
4:02 PM
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