NEW YORK, Aug 8 (Reuters) - Large technology companies may see their shares stuck at the same levels for the foreseeable future, despite a market consensus that their stocks are 'too cheap,' Barron's news weekly reported on Sunday.
Investors are puzzled by the relative lack of gains over the past couple of years for 'Big Tech' stocks, the newspaper said. It named the 'big five' tech stocks as Microsoft , Intel, Oracle, IBM and Hewlett-Packard.
Investors may have realized that these technology companies are subject to the same economic and competitive forces that other companies with less 'impressive and indispensable' products face, Barron's said.
Growth investors are also reluctant to buy 'good but mature and moderately growing businesses,' according to the article.
Barron's concluded that the technology sector's cheapness could last 'quite a while, even if it also reduces the risk of owning it at today's prices.'
(Reporting by Maria Aspan; Editing by Diane Craft) Keywords: SHARES/TECH (maria.aspan@thomsonreuters.com; +1 646 223 6394) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Investors are puzzled by the relative lack of gains over the past couple of years for 'Big Tech' stocks, the newspaper said. It named the 'big five' tech stocks as Microsoft , Intel, Oracle, IBM and Hewlett-Packard.
Investors may have realized that these technology companies are subject to the same economic and competitive forces that other companies with less 'impressive and indispensable' products face, Barron's said.
Growth investors are also reluctant to buy 'good but mature and moderately growing businesses,' according to the article.
Barron's concluded that the technology sector's cheapness could last 'quite a while, even if it also reduces the risk of owning it at today's prices.'
(Reporting by Maria Aspan; Editing by Diane Craft) Keywords: SHARES/TECH (maria.aspan@thomsonreuters.com; +1 646 223 6394) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.