It could be the start of a minor correction. This is not the usual time of the year for one, but after the amazing gains seen in tech stocks, consolidation at any time should not be surprising. Many technology issues are discounting results several years out and some Internet flyers are virtually discounting infinity. Any selloff should present some buying opportunities, though we do not expect most tech issues to reach bargain levels. In this market there are many bargains among the industry groups nobody wants.
Tech is where it s at, and tech bargains are fewer, but they can be found.
The portfolio includes stocks recommended recently, so on an annualized basis the performance would be much better. We did this buying stocks that were down or overlooked, taking on less risk than with a momentum approach. On Wall Street, it seems that research increasingly consists of dreaming up rationalizations for absurd prices on Internet stocks. This blinders-on approach is leaving some great buys for us to discover despite inflated prices for the best known names. With hindsight, a stock like Osicom seems to have been a no-brainer.