Tech stocks undervalued

Alexiuz

Newbie
2 0
With the recent declines of many of these stocks and that they are trading way lower than other stocks from many other categories when comparing the earnings/price.
Heard an expert on CNBC recommending these stocks. What do you think? Is there good opportunities there now?
 

zaysev36

Well-known member
421 15
There is a difference between undervalued and just cheap. Imo in the case of tech stocks the latter is more probable. After all, it's not like some particular shares aren't getting enough attention, it's a whole segment in recession. So I wouldn't blindly call the whole tech stocks market undervalued.
 

Alexiuz

Newbie
2 0
I don't know why many of these stocks' prices have declined lately. Maybe people are scared of a tech bubble. But instead the bubble might be in other stocks leaving many of these stocks good longs.
 

zaysev36

Well-known member
421 15
I don't know why many of these stocks' prices have declined lately. Maybe people are scared of a tech bubble. But instead the bubble might be in other stocks leaving many of these stocks good longs.
That's a chain reaction. People are afraid that stock prices will go down, and stock prices go down because people are afraid and sell them :)
 

platinumtrade

Junior member
20 1
With the recent declines of many of these stocks and that they are trading way lower than other stocks from many other categories when comparing the earnings/price.
Heard an expert on CNBC recommending these stocks. What do you think? Is there good opportunities there now?
Be careful. CNBC has many experts. These are sometimes biased opinions with hidden agenda's. Many times these so called experts are wrong but you rarely see them called back on the show at a later date to explain their errors. Some of the annalists are the worst offenders.
 

GoldenRetriever

Newbie
9 0
I agree with Platinumtrade. Some analysts are accurate, some aren't. Some are more consistently correct, while others are more consistently incorrect. Be careful about what the analysts say. To be a good trader, you should do your own research and come up with your own conclusions. There's nothing wrong about getting ideas or looking at different perspectives from your own. I would encourage that because they might have a view that you didn't think of and that is actually correct.

Personally, I would not be buying tech stocks. I am looking to short tech stocks and I am short Facebook.
 

platinumtrade

Junior member
20 1
The bottom line is, do not listen or follow anyone that is not proven and/or 100% transparent. Of course these talking heads on TV have their own motives, and most of the time its to sell a book or subscription service. Just look at the najarian brothers, all they do is pump their book and website - they are all the same (well most are, but I like Rick Santelli). Then you have the upgrades and downgrades by big banks and such, those are so they can get out of their position at highs/lows and sell to you for profit. I may sound bitter lol but its really that I have been doing this for a while and I learned that like some others said, you can't listen to the noise, you need to learn and empower yourself before you act, especially before you act on the advice of someone else! There are a few places on the web where you can find some good traders, but you really need to first make sure that they are worthy of your time before you follow much less act on anything they tell you! Sorry for the rant ;)
Sound advice indeed. I love it when a stock has been through a huge correction and then an analyst comes on tv with a downgrade and price target near where the stock has corrected and a sell rating. Where were they earlier in the cycle? This often signals the time to buy the stock. Completely rigged system. I refer you to Joy Global (JOY). A perfect example. I was loading up on this stock in the $8 range after it was totally oversold and the analysts were adjusting their targets to match the correction. Have faded it now.
 

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