Alan Brochstein

Tech May Be a Wreck, But This Isn't 2001

Thanks User 138602. I don't have an opinion on YHOO that is informed at all. I surely wouldn't want to own it if success depends upon being acquired. By many metrics (beyond PE), the stock looks very inexpensive, not surprisingly.

Tech May Be a Wreck, But This Isn't 2001

The hand, thanks for your comments. You make an excellent point - the industry is more mature indeed. I think it is a pretty bad industry quite frankly - way too much competition in many segments (semiconductors come to mind). I have just started warming up, having maintained zero or relatively low exposure for the past 15 months. One of the nice things about a recession is that it eliminates some of the weaker competitors, a process that allows the "survivors" to capture more share when the market resumes its growth. While I question the innovation at MSFT, many of the others in the large-cap Tech space will no doubt be selling things tomorrow that are quite different from today.

Tech May Be a Wreck, But This Isn't 2001

Thanks, Dr. O. I surely appreciate your point and believe it is mainly priced in, but, as you say "no one knows", certainly not me. An interesting aspect of technology is that it theoretically allows a company to "do more with less". To that extent, tech companies might surprise us.

Don’t Fight the Fed? Why Not?

That is certainly a possibility. What's nice about BFAM is that those services aren't going away. Even if unemployment rises, there will still be a need for these centers. I would suspect that large corporations, which are extremely profitable right now relative to historical standards, may trim headcount, but we aren't talking about super-hard times for companies. Just lower profits than they might hope for... In an environment of layoffs, the companies will not want to take away things that make life better for those who retain their jobs or morale will suffer even more.