Tech's Changing for the Better Now
This column was originally published on RealMoney on Feb. 27 at 3:24 p.m. EST. It's being republished as a bonus for TheStreet.com readers.
Nuttier things have happened, but when you take away the oil stocks and the golds and you decide that housing's no good, that frees up a goodly chunk of money. Guess where it is being redeployed.
That's right, technology.
Here's
EMC
(EMC)
finally moving off the $13 dime. How about
Cisco
(CSCO)
beckoning to leave the teenagers?
Qualcomm
(QCOM)
, at last, is acting like
Broadcom
undefined
and
TheStreet Recommends
Marvell
(MRVL)
. And get this: I believe next up are the semi capital equipment stocks.
I hesitate to say what could be behind all of this goodness. Certainly not the elusive Chinese telecom contracts that
The Wall Street Journal
writes up. (
Powerwave
(PWAV)
is the real winner there, I believe.) And not the consumer. He's dead, remember?
No, I believe it's because we have a group that hasn't moved in ages and that is no longer as expensive as it was. You can have EMC and Cisco go up 3 points and none of the value police will arrest anybody. Would anyone mind if
IBM
(IBM)
went to a 14 multiple from a 13? Didn't think so.
I have to tell you that it is quite rare to see this group as
unexploited
as it is. But some of it is because a bellwether like
Microsoft
(MSFT)
just caught a break from
Sony's
undefined
mess-up with PlayStation and a bellwether like
Intel
(INTC)
stopped going down after multiple estimate cuts. When the majors stop bleeding, the minors can start growing again.
I think tech's changing, right now, for the better. Hmm, next thing you know I will like
Sun Micro
(SUNW)
and
Dell
(DELL)
!
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