Morning Report Monday 7 April 2014
As the NASDAQ gets hammered, are there potential opportunities in IT companies?
The local share market is facing a tough start to the trading week, as investors hammered tech stocks on Wall Street on concerns about a bubble bursting and the prospect of higher interest rates. Technology, which in the year to date has outperformed all Australian indexes with a 6.1 per cent gain, has plenty of room for profit taking and hence a decent correction. Many analysts have become concerned that an asset bubble may be forming given increasingly steep valuations of internet-based companies. I have looked at four heavyweights in the sector below, all with PE's over 20, plus Vocus (VOC), who does not have a strong monopoly, but we believe does have superior growth.
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