Can Apple Optimism Spread Through Tech Industry?

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July 24 (Bloomberg) -- Howard Ward, chief investment officer of growth equities at Gamco, examines the state of the tech industry and what looks like a slow comeback for old tech companies. He speaks on “Bloomberg Surveillance.”

New apple products before years end.

Can the apple optimism come over to the rest of technology?

I think it is very much happening.

E$27 a couple years ago.

Ibm was given up for dead and even ibm with less than 10 times earnings are showing strength . intel, committee given up for dead at 20. howard ward, is it money finding a warm spot because it doesn't know what else to do, or is it going to these names because the future expectations?

First of all, these stocks became cheap and the expectations became very low and the bar was reduced.

They have managed themselves better, their businesses on the fundamentals are improving, stock prices are reflecting better expectations for them now than in the future.

Am i better off putting my money in facebook, which announced blockbuster numbers last night, trading at 50 times, or the old guys -- intel, cisco, etc.? i own both.

We bought most of our facebook at $30 and added to it in april at 54. over 2% position in our fund now.

Facebook into next year's earnings is about 35 times.

You are paying about 16 times for the s&p 500. s&p 500 has grown top and bottom line mid-single digits.

Facebook, 30%. i think facebook has room to run you don't think it is that expensive.

It has entered the sort of hall of fame media hybrid technology company like google with this tremendous platform global and now monetizing mobility.

I'm going to rip up the script here.

Scarlet, we will be equipped by parker in a moment -- they start a dividend.

Buying back shares as well.

Can howard ward, conservative guy, by airlines is a conservative industry?

Is a growth?

Should we get a bloody mary -- no growth would have bought an airline in my 36-year career.

High capital costs, high labor costs.

Editors go bankrupt and yet they still compete with you.

-- competitors go bankrupt and yet they still compete with you.

It is a nightmare business.

The economy is doing better.

Price of oil has been pretty flat the last couple years.

They are making a lot of money.

I doubly that was convincing.

-- i don't believe that was convincing.

[laughter] rent it, don't own it.

I like it.

Caterpillar setting a $2.5 billion stock buyback program.

If this is comparable, that is compared with the estimate of one dollar $.52. that is a huge beach for caterpillar.

-- beat for caterpillar.

This text has been automatically generated. It may not be 100% accurate.

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