iPod breaks free from Apple history 15 Jan 2004 The computer company has a history of seeing others profit from its ideas but it looks set to break this with iPod. Apple s dominance of online music sales ensures there will be a ready stream of iPod buyers.
Accounting change could lead to tech merger rush 2 Jan 2004 Proposed US rules make tech and biotech mergers less appealing after December 2004. Acquired R&D can no longer be written down so acquisitive companies will report lower earnings and returns on equity.
Tech set for revival – for some 11 Dec 2003 Technology demand from businesses is perking up. But the New Year's presents may not be evenly distributed. While hardware and software companies can anticipate cash, it looks like nothing but coal for IT services.
Cisco revenue increase feeds telecom bulls’ hopes 6 Nov 2003 John Chambers, CEO of the US telecoms equipment maker, is now more optimistic But the stock s price is still absurd, even with a massive share buyback plan continuing.
STMicroelectronics starts investing for the upturn 23 Oct 2003 The FrenchItalian chipmaker is raising capital expenditure by a third to revamp production facilities. This looks bullish, but is it premature? Chip sales may be going up but margins aren't.
LogicaCMG reaps merger benefits 3 Sep 2003 The AngloDutch IT services group has cut costs admirably, defending its margins from the downturn. But it has produced precious little evidence to suggest revenues can rebound. That must come soon to support its share price.
Tech stocks price in too much growth 22 Aug 2003 Can tech stocks grow annual earnings 12 percentage points faster than the general market over the next four years? That is what it would take to justify their relative price/earnings rating.
Infineon sticks snout back in trough 30 Apr 2003 The German chipmaker is raising capital for the third time in two years despite not obviously needing the money. Infineon has taken a sceptical view of the economy and the rally in markets. Other technology firms should take note.
Bush tax plan may line tech gurus’ pockets 8 Jan 2003 Forget the ideological benefit. No more double taxation of dividends absolves Gates, Ellison et al from huge personal tax liabilities. See how they could benefit from a 40% dividend payout rate, let alone a special return of cash to shareholders.
Tech spending may fall this year – survey 3 Jan 2003 Analysts may soon have to throw in the towel on their 2003 earnings forecasts. With valuations still stretched, tech stocks are cruising for a bruising.