Moore's Law's and Tech Stocks Like Computer Sciences

Technology stocks have a rhythm of their own. Despite the present downtrend in this sector as the economy generally slumped, technology stocks still remain the cheapest. The sector's P/E stands at 22.8, after adjusting for a slowdown. But the tech sector has historically traded at a steep premium to the S&P's P/E - 73 percent higher, adjusted today at only around a 36-percent premium. Computer Sciences Corporation (CSC), a leading global information technology [IT] services company provides customers in industry and government with solutions crafted to meet their specific challenges and enable them to profit from the advanced use of technology.

Computer Sciences Corporation has recently announced that the Company has completed its acquisition of First Consulting Group for $13.00 per share, or approximately $365 million, in an all-cash transaction. The announcement follows approval of the acquisition by the stockholders of FCG at a stockholders' meeting held January 10th of this year. As stated by Larry Ferguson, Chief Executive Officer of FCG, "We are pleased to announce the completion of this acquisition. CSC is a leader in the global IT services industry and will now be an even stronger player in the healthcare technology market. In addition, this transaction delivers significant value to our stockholders and provides FCG employees with new and expanded career opportunities."

According to the Editor of Wealth Daily, Steve Christ, “To a large extent real progress on the technological side is dependent upon the progress of the chips themselves.” Hardware improves by a factor of one hundred every ten years, while software improves by a factor of ten, in the working of Moore's law, giving tech stocks a rhythm of their own. It puts the techs on something of a ten-year cycle in introduction of advances to the market, leading to share price increase. Moore's law describes an important trend in the history of computer hardware. The number of transistors that can be inexpensively placed on an integrated circuit is increasing exponentially, doubling approximately every two years. Corresponding actual responses in the sector were experienced i.e., the introduction of the Internet to the masses in 1996, and ten years later, the faster chips and improved software at present which led to the creation and improvement of various devices, from laptops to cell phones, iPods and video games.

Computer Sciences Corporation (CSC) has its share in the trends and developments in the technology sector. It provides innovative solutions for customers around the world by applying leading technologies and CSC's own advanced capabilities. Under its Project Accelerate, major growth initiatives being undertaken by CSC include: maximizing the potential represented in CSC India’s offshore capabilities; developing a robust presence in the emerging midsize outsourcing marketplace; aligning vertical industry activities, such as healthcare, with markets representing the greatest growth potential; enhancing global integration and world sourcing capabilities; and strengthening the Company's position in public sector business.

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