Top 10 trade ideas for 2014
Proposition #3: Technology
The combination of strong demand in the private sector, rising capex expenditure at the corporate level, and short product life-cycles make this industry sector particularly interesting; and at current price levels the sector offers the best risk-adjusted upside potential in the market.
An improving macroeconomic picture as well as technological developments such as cloud computing will drive future information technology spending, which in turn will further support the sector. The technology sector is the quintessential example of the modern virtuous circle comprising research, development and application, and subsequent economic growth.
Most technology companies currently have healthy balance sheets, and many companies operating in this sector have recently started to pay dividends and implement share buybacks in addition to their capital expenditure programs; nevertheless, they remain fairly valued.
Based on actual company metrics and present risk-reward drivers; the companies below offer access to the latest technology drivers and systems.
List of well-positioned (company metrics, risk-reward drivers) IT companies:
Top 10 trade ideas for 2014 Proposition 3 Technology.pdf
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Apple, Austriamicorsystems, EMC, Samsung,