tech stocks
-
Here's What Happened to the Tech Stock Rally
-
Why Investors "Sell in May and Go Away"
The time-value-of-money concept forms the basic foundation for all investments.
And like anything having to do with people, there are rhythms to the stock market that are a function of time-- whether it is the time of the trading day or a particular time of year.
One of these seasonal rhythms is so strong it has given birth to its own adage. Every investor knows it.
It's the admonition to "Sell in May and go away," and it's a proven strategy that results in gains for investors.
According to Sy Harding, author of the book "The Bear: How to Prosper in the Coming BearMarket:" "Over the long term, the market makes most of its gains each year in the winter, and when there is a serious correction, it most often takes place in the summer. We've known about that pattern for decades. The pattern has been confirmed by independent academic studies."
The Logic Behind "Sell in May and Go Away"
There are a myriad of reasons for this, most having to do with the cash flow aspects of the business calendar.
To continue reading please, click here... -
Will Apple Inc. (NASDAQ: AAPL) Keep Driving Technology ETFs Higher?
Despite the recent selloff, shares of Apple Inc. (NASDAQ: AAPL) have skyrocketed 48% in the first quarter, dwarfing the 12% gain posted by the S&P 500.
Apple's astonishing rise has also helped to underpin the Nasdaq Composite, which gained nearly 19% in the first quarter -- its strongest showing since 1991.
But that's not the only place to experience the "Apple Effect."
Many investors who own technology ETFs -- which hold almost 4% of all Apple shares outstanding -- were rewarded with even better returns.
For instance, theVanguard Information Technology ETF (NYSE: VGT) was up 20.85% in the first quarter.
Even better, the iShares Dow Jones U.S. Technology Index Fund (NYSE: IYW), was up 21.77%, thanks in part to Apple.
Now the question is: Can Apple's momentum continue to drive technology ETFs higher?
To continue reading, please click here...
-
Tech Stocks: The Deal with the Google Stock Split (NASDAQ: GOOG)
Google Inc. (NASDAQ: GOOG) reported first-quarter earnings after the close yesterday (Thursday) and the Internet search giant did not disappoint - and also delivered a surprising stock split announcement.
First quarter profits at the Mountain View, CA-based company soared 61% to $2.89 billion, or $8.75 a share, up from $1.8 billion or $5.51 a share a year ago. Excluding stock-based compensation, profit rose to $10.08 from $8.08 a share. Total revenue was up 24% to roughly $8.14 billion.
Analysts had anticipated earnings of $9.65 a share and revenue of $8.15 billion, according to Thomas Reuters.
While the numbers were a little light, the company appeased investors with an upbeat outlook going forward.
Google also made an unexpected move: a two-for-one stock split.
To continue reading, please click here... -
Tech Stocks: Nokia (NYSE: NOK) Getting Squeezed in Smartphone Market
Nokia Corp. (NYSE ADR: NOK) shares were hammered today (Wednesday) after the company announced its continued smartphone market struggles would weigh on profits in 2012.
Nokia, the world's largest maker of cellphones by volume, warned that mobile phone sales will be weaker than forecast in the first quarter due to strong competition in fast-growing markets. After previously thinking it would break even, Nokia now predicts a 3% loss.
The word of warning highlights the steep challenges the Finnish cellphone maker faces in attempts to bolster its smartphone lineup. Cellphone devices and services account for up to 60% of Nokia's sales.
The latest lowered profit forecast is the second in less than a year, and the note of caution sent shares of Nokia plummeting to a 15-year low. Nokia last warned of falling profits in May 2011 due to its weak and diminishing presence in the ever-growing, highly contested smartphone market.
Now the company needs to figure out how to compete with the raging popularity of Apple Inc.'s (NASDAQ: AAPL) iPhone, while fending off competition among lower-end smartphone models running Google Inc.'s (NASDAQ: GOOG) Android operating system.
Click here to continue reading...
-
Is Groupon (Nasdaq: GRPN) the Next Enron?
Is Groupon the next Enron? ... No. It's worse.
Before the company even went public, there were signs that internal financial controls weren't up to snuff.
Now I'm hearing refrains of "three blind mice" as "defrauded" investors line up to have their day in court. You might as well say the "dog ate my homework."
It's not like no one knew this was coming.
The U.S. Securities and Exchange Commission (SEC) made management redo Groupon's financial statements and accounting practices not once, but twice before the company's January 2011 initial public offering (IPO).
The first time involved including the cost of marketing in operating income - duh. The second was to force the company to deduct merchant payments from revenues - double duh!
Both are basic accounting principles.
If you spent $2 to gain $1 in orders you have to report that as a $1 loss if you're dealing with cold, hard cash. Also, if you have $1 in merchant payments, you can't count that as $2 in revenues, unless apparently you work at Groupon and love accrual accounting.
It's not like Groupon execs can claim they didn't know.
It's abundantly clear to me that the "company" has very little, if any, understanding of REG FD and securities litigation.
(REG FD, in case you are not familiar with it, is short for Regulation Fair Disclosure which the SEC adopted Aug. 15, 2000. REG FD is intended to eliminate selective disclosure of material non-public information.)
But I have a hunch they're going to find out the hard way.
Groupon's "Material Weakness"
When the SEC came knocking again on April 2nd the company was forced to restate its Q4 financials. That summarily reduced Groupon's revenue by $14 million and profits - assuming there were any to begin with - by $22.6 million.
In an official statement, Ernst & Young, the company's primary auditor, noted "material weakness" with regard to the company's internal controls. Investors simply noted that they'd better get going while the going was good.
Groupon's share price tumbled 16.87% Monday alone and is down 55% from its peak.
To continue reading, please click here... -
Tech Stocks On the Move Today: SanDisk Corp. (Nasdaq: SNDK), Yahoo Inc. (Nasdaq: YHOO), IBM Corp. (NYSE: IBM)
-
These High-Tech IPOs Are Fueling the Nasdaq Rally
Don't look now but big paydays are here again in the tech-heavy Nasdaq.
From the depths of the 2009 bottom, the Nasdaq is up 139%, hitting levels it hasn't seen in more than 10 years.
In the last three months alone, the bellwether index is up nearly 19% -- outpacing the 12% gain in the S&P 500.
But here's the thing: It's not all about Apple.
The high-tech IPO market is practically on fire. One of them is Jive Software (NASDAQ: JIVE).
Since Jive debuted last December, shares have jumped 25% from the offering price on the first day.
Since then, the stock has done nothing but power ahead. At the close of trading Thursday, Jive had nearly doubled in less than four months!
Hot High-Tech IPOs are a Major Market Trend
But that is just the beginning. Successful new issues like Jive reflect major trends reshaping markets.
Jive creates tools that help businesses run social networks, clearly an important way for many firms to reach new clients.
Jive is hardly alone. Several high-tech IPOs are showing excellent returns in the market's strong rally.
In fact, this actually is the best overall period for tech stocks since the "dotcom" crash 12 years ago.
Aside from Jive, several other IPOs have turned in double-digit gains in the last several months helping to lead the overall market higher - especially the Nasdaq.
Of course, the Nasdaq still needs another 40% surge to match pre-bubble values. But that's not the point.
Investors need to remember that every bull market contains leaders that have new products in new fields.
That is what always lands solid high-tech IPOs in the winner's circle.
The good news for investors is that they can expect to find more new issues in the weeks ahead.
PricewaterhouseCoopers LLP said in a recent report that 274 firms filed registrations in 2011, the largest number in several years. Of those, about 160 remain in the IPO pipeline.
Now don't get me wrong. I'm not suggesting you throw a dart at the IPO board. Far from it.
You still have to remain a disciplined, focused investor.
Just think if you'd tied up a lot of funds in BATS Global Markets. The tech-focused exchange had to withdraw its IPO last week because of a software glitch.
Of course, that kind of mistake isn't just stupid. It's inexcusable. But let's not focus on the negative.
There are just too many winners to look at.
To continue reading, please click here... -
Growth in Google's Android Pays Off for InvenSense Inc. (NYSE: INVN)
The exploding number of Google Android devices has become a cash machine for microchip maker InvenSense Inc. (NYSE: INVN).
InvenSense makes the tiny motion sensors used in 70% of Android phones and 90% of motion-sensing Android tablets.
Mobile device makers have enthusiastically adopted Android, an operating system developed by Google Inc. (Nasdaq: GOOG), because Google licenses it for free.
Growth in Android devices is exploding.
At the Mobile World Congress in Barcelona last month, Google Senior Vice President for Mobile Andy Rubin announced that 850,000 Android devices are activated every single day, for year-over-year growth of 250%.
That kind of growth offers tremendous potential for a company like InvenSense, which only went public last November.
With 512 million mobile devices expected to be sold by 2014, the market for InvenSense promises to be huge.
InvenSense: The Best Performing IPO of 2011
These motion-sensor chips, called Micro Electro Mechanical Systems (MEMS), are what enable mobile devices to react to tilting or shaking.
Although MEMS technology has existed for decades, it was when InvenSense's motion sensing chips were used in the Nintendo Co. Ltd. (PINK ADR: NTDOY) Wii controller in 2006 that the technology started to go mainstream.
To continue reading, please click here... -
iRobot's (Nasdaq: IRBT) Timing Couldn't Be Better For Investors
iRobot Corp. (Nasdaq: IRBT) made the right decision.
And the Pentagon just proved it.
The small-cap robotics leader knows only too well it needs to increase its private sector sales as America works to cut defense spending.
That's why iRobot Corp. has reorganized to target the health care, retail and security industries.
For investors, the timing couldn't be better.
After all, the Defense Department has announced several new robotics breakthroughs in recent days.
This shows the U.S. military is still completely committed to using robots to win the War of the Future.
But now that American troops have left Iraq, the Pentagon's top brass is pinching pennies like never before.
And yet...it has new robots to brag about.
In a moment, I'll tell you all about them. But first...
To continue reading, please click here...
