Gottfried and threaders, I am trying to create a model to give me some indication as what technology to invest in. Using a pyramid, I divided it into the below six levels. Please critique my thoughts. If there is some madness to my thoughts do we start from the bottom or from the top to give us some indications in which stocks to buy.
At the top level I included the telephone stocks, ie. SLB, AT&T, TCI, NOKIA, ETC. Second level from top I included the major suppliers to level one, ie. CSCO, NT, LU, JNPR. Third level from top is the suppliers to the level two, ie. PMC SERRA, JDSU, SYCAMORE. Level 4 is the computer stocks, APPLE, DELL, COMPACT, etc. Level 5 is the Semiconductors, ie. INTC, MOT, TXN, AMD MICRO TECHNOLOGY, etc. And, level six, bottom level, the semiconductor equipment stocks, AMAT, NVLS, KLIC KLAC, etc.
My question is whether this pyramid is practical and logical?
If it is then should the Software companies be added as the lowest level since software appears to fill the space on the hard drives, ie expansion from 32 RAM five years ago to 512 RAM coming down the tube. Software companies would be MSFT, CA, ORCL and others.
Just my thoughts.
Paul |
