

The Register paints a grim future for the Tech Sector - Stubbs
http://www.theregister.co.uk/2008/07/15/tech_economy_woe/

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ojbyrne
Intel announced record revenue and income last night. That article eventually
ends up talking about the high-tech giants GM, UPS and Exxon.

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Tamerlin
The Reg once posted an article titled "PC Sales Down" while in the first or
second paragraph they had the statement, "PC Sales are up 13%" (or something
like that, the number's probably a bit off).

I suppose that shows where their priorities lie -- sensationalism.

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jobeirne
I'm painting a grim future for the Register.

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wmeredith
Sounds like a good time to invest.

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Tichy
Um, let's see: maybe the stock is already at it's lowest point, then investing
would be good. On the other hand, the stock might fall even lower, then
investing would not be good.

Information gained: 0.

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swombat
Wrong.

A "good buy" is not one which "has fallen as low as it possibly might", but
one which is under-valued. When considering long-term investments, what matter
is not whether the stock will go lower in the months, or even years, that
follow, but whether it is undervalued.

Chances are, most tech stocks are undervalued these days. If I had any money
I'd buy Apple, which is no doubt dragged way below its intrinsic value because
of the general downturn.

A good maxim for long-term investors is: if the stock you're holding (waiting
for it to go up) goes down instead, re-examine the fundamentals. If the
fundamentals haven't changed, buy some more. That should help explain why what
you say doesn't make real sense (even though it appears superficially
sensible).

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Tichy
"Chances are, most tech stocks are undervalued these days. If I had any money
I'd buy Apple, which is no doubt dragged way below its intrinsic value because
of the general downturn."

What makes you think so, and why would you be the only one thinking that way.
How do you know that Apple wasn't extremely overpriced before and is now
seeing the long overdue correction?

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swombat
I think Apple's been chronically underpriced because financial analysts and
the like seem to lack the foresight, over and over again, to realise that when
Apple launches a new product, it's pretty much guaranteed to be a hit.
Basically, I believe that Apple's products are more awesome than the market
thinks, because the market is non-technical on average and so doesn't fully
comprehend just how cool Apple's products are, and treats it more like just
any other technology company.

I'm not a financial analyst, though, so this is not backed by any data, if
that's what you're asking :-)

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swombat
Hey, they forgot the sector that's doing really well these days:

Oil.

