Still high on low-flying technology stocks
Article Abstract:
The recent drop in technology stock stems from Wall Street misconception, according to author and newsletter editor Michael Murphy. Most investors tend to underestimate technology, which Murphy says drives the 'new economy,' in favor of the 'old economy's' traditional corporations. Murphy said he would allocate assets by 'new economy' holdings and 'old economy' holdings, rather than the present system of stocks, bonds and so forth. An example of Wall Street's misunderstanding is the Far East economic struggle, as companies dependent on consumer sales there suffer more than technology companies. Investors, however, have been selling stock in semiconductor companies and other technology firms. The technology sector is growing about 20% annually, and it accounts for around 15% of the total economy, Murphy said. He anticipates growth in the semiconductor equipment and biotechnology sectors, and is most negative on the Internet infrastructure software companies that manufacture items such as browsers, servers and firewalls.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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Tumbling technology stocks: problems go beyond Asia
Article Abstract:
Various factors contributed to last week's sharpest decline in technology stocks since 1987. The drop can have broader market consequences on the stock market, because a growing number of investors view the technology sector as a stock barometer. Nasdaq, which relies heavily on technology, dropped 6% of its overall value. The Pacific Stock Exchange's index sank 9.8% overall, with 94 of 100 issues falling. Among the impacted companies were Oracle, Intel, Microsoft, Cisco Systems and IBM. Problems extended beyond the recent downturn in Asia, where many technology companies have invested heavily in sales and earnings growth. Other problems include stiff pricing competition, a surplus of components and a worldwide slowdown in PC sales. Semiconductor manufacturers and semiconductor manufacturing capital equipment vendors, both of which have a large Southeastern Asian presence, experienced a sharp decline.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
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On-line trading takes off
Article Abstract:
The amount of discount brokerage companies that offer online trading has practically doubled from 12 to 22 since Jan 1995, according to the American Association of Individual Investors. Participating brokerage companies include such large firms as Fidelity Brokerage Services and smaller ones such as Pacific Brokerage Services. Online accounts have soared from 412,000 in 1995 to 624,000 in 1996. Forrester Research predicts that 1.3 million on-line accounts, will be opened by 1999. Charles Schwab & Co is advancing the proliferation of online trading with its Street Smart and e.Schwab software and its new Internet site for online trading. Investors interested in online trading can trade via a discounter's special software like e.Schwab, through an online service such as CompuServe or through such generic modem software as ProComm and Crosstalk.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
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