New horizons for tech stocks

TECHNOLOGY

The technology sector has come a long way in the 10 years since the bursting of the dotcom bubble, writes RCM's Walter Price

The debt overhang in the developed world may be stifling global economic growth, but the technology sector offers attractive opportunities with solutions to many of the major current challenges. There is a multitude of companies with strong balance sheets across the sector, while consolidation in the industry has reduced competition, boosting the position of industry leaders. In the 2000 tech bubble, some stocks were selling at 200 to 400 times earnings, whereas looking at valuations now, many tech companies are on less than 25 times earnings. They have a lot more cash, and even the Ch...