Tech executives, take note: SCI Systems ( SCI) did the smart thing Monday.
OverinvestmentThe problems at SCI -- and across the tech sector -- stem from overcapacity and slower growth, courtesy of the turn-of-the-millennium financing bubble. "The real side effect of a huge increase in asset values," notes Trilogy Advisors chief investment officer Bill Sterling, "is overinvestment."
|Urge to Merge? |
Tech's plunging capacity utilization
|Source: Federal Reserve|