US tech stocks differentiate: cheap buy old tech giants

Introduction: Foreign media wrote today that while the IPO of emerging technology companies (IPOs) has been sought after, the stock of the old technology giants has fallen, potentially creating a rare buying opportunity.　　The following is the full text of the article: speculation in the pursuit of the latest technology companies IPO, investors seem to forget some of the previously popular old technology companies. Old technology stocks such as Apple and Google were markedly weaker in the second quarter amid the hype over Zynga, LinkedIn and Facebook.　　The Nasdaq Composite index ended with a fall in the quarter, while other markets rose. The popularity of emerging technology companies is clear. LinkedIn's first-day market capitalisation reached about $9 billion trillion. Zynga filed a total of $1 billion in IPO applications to regulators in Friday, although the final figure may be adjusted.　　Facebook's market capitalisation is expected to exceed $100 billion trillion, ahead of established companies such as Cisco and HP. However, some investors believe that the fall in technology stocks is likely to be out of control. LinkedIn's share price is about 21 times times the market rate for 2011 years.　　However, Google and Apple are less than 6 times times the target. "Both Apple and Google are big market growth stocks, but their current valuations don't reflect that." "Investors don't see them as growth stocks," said Paul Bard, Renaissance Capital Research director at IPO investment consultancy in the US. Instead, they are betting on emerging internet companies. "In terms of valuations, relative valuations of tech stocks and the overall market have reached their lowest level in nearly 20 years," he said. In the past 4 months, the US technology sector has been trading at a lower-than-average price-earnings ratio for the 500 index, according to Swiss bank figures.　　This has been the first time since 1992. As of last week, the standard and Poole 500 index was about 12.4 times times that of a year, and the technology sector was only 12.1 times times.　　Apple is 12 times times, Google is 13.8 times times, Intel and Microsoft are less than 10 times times.　　The turning point in the tech sector came in March, when Japan's earthquake and tsunami disrupted supply chains and raised concerns about global economic growth, dragging down stocks.　　Jonathan Golub, chief equity strategist at UBS, Jonathan Grob that it is now a good time to buy tech stocks and gives many tech stocks he thinks are "exceptionally cheap". Some experts agree that valuations are already so low that stocks are likely to rise once there is a stronger signal that the economy is out of its long-run malaise. There has been a glimmer of light last week and tech stocks have rebounded as the overall market begins. Even as the economy worsens, valuations and cash flows from technology companies such as Microsoft, Cisco, Intel and Hewlett-Packard, as well as rising cash and a high percentage of dividends, can still be conservativeInvestors become attractive. Montgomery Scott Mark Lushni, chief investment strategist at Janney, a US investment firm, believes there are some indications that such indicators have gained the attention of some investors.　　He noted that Microsoft's share price rose 2.4% in the second quarter, far exceeding the 0.4% per cent increase in the standard and poor 500 index. "They appear to be ignored, and if you buy them, they will be isolated by the market." "People seem to think they are the victims of the old world, and that emerging technology will make their privileges disappear," Lushni said. But I think the opposite is true. "Not everyone is optimistic about the sector. Burt White, chief investment officer at LPL Financial, the US investment company, points out that the technology sector has lagged behind the overall market for earnings and revenue growth in recent quarters. "This is not what we expect from the technology sector. The market simply worries that growth is not up to our expectations.　　"he said. If investors think that a company has huge growth potential, it usually buys at a high price.　　But companies such as Cisco and Hewlett-Packard, which have fallen out of favour, have not been treated this year, their share prices were the worst in the Dow Jones Industrial Average's 30-component stocks. As of Friday, Cisco has fallen 22% per cent this year, with HP down 12% and Microsoft down 6.8%.　　U.S. stock market Monday due to independent Zichou City one day. "If growth doesn't happen, these valuations can collapse," says Budd. But if growth is achieved, history tells us that this level of valuation will become the norm for more mature growth companies in the future. "Investors now have a rare opportunity to buy some stocks that were previously too expensive at a reasonable valuation," said Phil Orlando, Federated Investors equity strategist at the US investment firm. "Cheap is the time to buy." "he said. (PEI)