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HOW TO EVALUATE HIGH-TECHNOLOGY STOCKS and *High technology is the last frontier in American business. *Many of the new businesses revolve around some type of technology, *whether it is direclty computer-related, communications-related or *somehow tied in with the "Electronic Superhighway", whose arrival *we all eagerly anticipate. Although tech stocks have declined sharply *in during bear markets, they have proven to have outperform other stocks, *re-bounding more sharply in subsequent recoveries. and *There are three major advantages that point to small companies: *1.) They are generally free from government regulation because
*There are several rules to follow if you choose to be an investor in this *high risk market. Firstly, do not be fooled by the size of the company. *It is important to investigate the high-technology expertise of the firm *and secure that it is a meaningful part of the firm's business. *Secondly, it is vital that the company is serving a current social need *in the marketplace. * *For example, cable was first intro-duced in the 1960's and interested *investors long before it could draw subscibers. and *Look for companies that are operating in the black. Companies that offer *teriffic scientific break-throughs but operate at a deficit are just too *risky. It is also important that you ignore market indexes. Companies with *technological superiority are not tied to a stock mar-ket environment over *time. and *Lastly, keep current on all technological innovations. Buy trade magazines *and read scientific papers and investment guides that deal with technology *and technology-related fields. and and and |
