CPQ recommended by influential firm. I saw the CNBC interview referred to in the piece, attached below. I am a bit puzzled about his comments about the US$. In the interview he said that it reduces the cost of components purchased in the US for exports of tech products. No doubt that DELL and CPQ and others could adjust to a lower dollar, but surely the strong dollar has been a large part of the story in giving a big bang for components manufactured in Asia for DELL and CPQ for the Asian and international market. Anyone got a grasp of this?
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EW YORK -(Dow Jones)- The technology sector has hit its lows,
according to Phil Schettewi, a managing partner at asset manager Loomis
Sayles & Co. "We've seen the lows for technology and for the market,"
Schettewi told CNBC Wednesday.
The sector will continue to strengthen on the back of Microsoft
Corp.'s (MSFT) and International Business Machines Corp.'s (IBM)
better-than-expected earnings, he said.
The dollar's weakness is also a "positive" for the sector because it
makes goods from overseas cheaper, he said.
Investors should take advantage of the sector's recent lows and "buy
the dips," as well as choose stocks that represent different areas
within the technology sector, Schettewi said.
Schettewi recommends Hewlett-Packard Co. (HWP), Gateway Inc. (GTW),
3Com Corp. (COMS), Compaq Computer Corp. (CPQ) and Computer Associates
International Inc. (CA). |
