A year of growth coupled with a three-month correction have created some interesting valuations among tech stocks.
Nokia is one of the more extreme examples. A series of missteps that sent shares of the Finnish cell phone giant into a 40% tailspin could create an opportunity for patient investors.
Nokia trades at a price to earnings ratio of just 15. It has $14.6 billion in cash, and only $765 million in debt.
With other leading tech stocks trading at 25-35 times earnings, Nokia could reward shareholders nicely when it eventually rights itself.
The market was mixed once again on Wednesday, as investors awaited Friday’s jobs report and continued to digest the Federal Reserve’s plans to raise interest rates gradually.
The Nasdaq rose 6 to 1957, the S&P 500 added 1 to 1121, and the Dow slipped 6 to 10,310. Volume declined to 1.47 billion shares on the NYSE, and 1.59 billion on the Nasdaq. Decliners led by a few issues on the NYSE, while advancers held a 16-14 edge on the Nasdaq. Upside volume was 56% on the NYSE, and 55% on the Nasdaq. New highs-new lows were 56-135 on the NYSE, and 57-39 on the Nasdaq.
After the close, Roxio beat estimates.
During the day, Cypress Semi rose 6% after raising guidance.
Orbitz fell 7% after beating estimates but issuing mixed guidance.
Bookham , GRIC
, Open Text
and CNT
fell on disappointing results.
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