Tech This Week...A Tale of Two Extremes

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Nov. 4 (Bloomberg) -- On today's "Insight & Action," Adam Johnson looks at tech stocks on Bloomberg Television's "Street Smart." (Source: Bloomberg)

This week in technology, we got a tale of two extremes.

Time for insight and action.

Let's talk about it.

It's almost poetic.

Twitter on one hand, plenty of buyers.

Blackberry, on the other, who is actually going to buy this thing?

They're not going to price this thing around somewhere around 13 times sales.

The same time you have fairfax financial pulling back, and now we don't exactly know what's going to happen with blackberry.

It just reminds us how difficult it is to trade technology.

Typically, you have companies that are at the end of the bell curve.

The thing is, gets very hard, because either you have to be dead right on this one, if you're paying a lot, and it's going even higher, or you have to be dead right on this one, it is as low as it's going to go.

It is tough to play the ends of the bell curve.

So today were going to play the middle of the bell curve.

We are just playing probability.

We went through the s&p 1500 and try to find growth at a reasonable price.

We look for earnings growth of at least 30%. that is significant growth, about five times what we see in the market as a whole, and those with earnings of under 30 times.

That is twice what you are paying for the market, but you're also getting five times the growth.

I will pay five times the market for five times the growth.

Let me give you three examples.

Applied materials makes semiconductor equipment.

When 14 growth, 89%. you are paying 30 times.

I will pay 30 times for 89% growth.

Computer science at 29% and 13 times.

These are the big caps.

We also went into the mid-cap and small-cap.

Those are all posted by 16 companies that ajinsight.

There is growth out there, you can find it at a reasonable price.

Just have to know where to look.

Are closure says technology

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


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