RBN-INFO-TECH : HOW TO EVALUATE HIGH 'TECHNOLOGY' STOCKS

The High technology is last frontier in the American business. Many of the new businesses revolve around some type of technology, whether it is directly computer , communications related or some how tied in with the 'Electronic Superhighway', whose arrival we all eagerly anticipate. Although tech stocks have declined sharply in during bear markets, They had prove to have out perform other stocks, re-bounding more sharply in subsequent recoveries.
There are 3 major advantages that point to small companies:
a.) They are generally free from the government regulation because their earnings are often in the new field.

b.) The company stands to gain a lot of ground, if the come up with a unique idea. The growing market will be theirs to dominate.
c.) The impact their earnings will have on their financial status will be considerable.Therefore a success can increase their profitability greatly.


There are several rules to follow, if you choose to be an investor in this high risk market. Firstly, do not be fooled by 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 an current social need in the marketplace.

For example:
The cable was first introduced in the 1960’s and interested investors long before, it could draw subscriber's.
Look for companies that are operating in the black. The 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. The Companies with technological superiority are not tied to a stock market environment over-time.

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.

RBN-INFO-TECH