Big profit potential in big tech companies

Apr 29, 2013 | Securities

Big profit potential in big tech companies

Big profit potential in big tech companies

On 26 April, in a research note to clients, Stansberry Research suggested that now is the time for investors to take a look at the world’s leading tech companies including Apple, Microsoft, Cisco, and Intel, each of which are currently trading at bargain valuations. The research also highlighted that when taking into consideration their large cash reserves, these world dominating tech companies become even cheaper.

The research note highlights Cisco as a prime example. It has a market cap of $110 billion and has over $46 billion in net cash (cash on hand minus debt). If you take into consideration its massive cash wealth, it’s selling for an incredible six times earnings!!

That is super cheap compared to the current market P/E of 16x.

We first wrote about Microsoft’s compelling value back in December 2012.

Don’t wait too long, though, as Stansberry Research believes that the market is finally catching on to the value in Big Cheap Tech.

You can read the full article below:

‘Three Major Developments in the Big Cheap Tech Trade’

The note highlights that last week:

  • Microsoft popped a total of 7% after a respected hedge fund announced a large position. In all, shares are up 21% since they bottomed last fall making them a chip-shot away from a new 52-week high.
  • Intel also “broke out” to multi-month highs. Shares are up 16% in two months.
  • Apple shares had fallen 42% from their peak several months earlier, however last week the company provided Wall Street analysts with a decent earnings report… that promised to return more money to shareholders. That promise should allow the beaten-up stock to stage a rebound.

The big moves in Microsoft and Intel show investors are warming back up to the sector… Apple’s news could be the catalyst to reverse its downtrend.

If you would like to explore how you could include some of the world’s premium tech companies in your share portfolio, contact UGC for a No Cost, No Obligation consultation on 03 8657 7640 or email info@ugc.net.au. We would be more than happy to review your current arrangements and give you the advice you need for a more secure future.

The information contained in this report is General in nature and has been prepared without taking into account your objectives, financial situation and needs.

 

<a href="https://ugc.net.au/author/joel/" target="_self">Joel Hewish</a>

Joel Hewish

Joel is the founder and CEO of UGC. He is a licensed financial advisor with 15 years experience assisting clients grow, manage and protect their wealth.

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