Avoid These Tech Value Traps

By Austin Smith and Andrew Tonner | More Articles
December 1, 2011 | Comments (3)

The following video is part of our "Motley Fool Conversations" series, in which Motley Fool financial editors Andrew Tonner and Austin Smith discuss their favorite stocks.

In today's edition, Austin and Andrew talk about some of the screaming bargains in the tech sector. While P/E ratios have risen a bit over the past few days -- above what they were when this video was shot -- it's important to carry the same lesson going forward if you're thinking about buying tech. It's a must-watch review for any value or tech investor.

The true winners
The tech sector is known for rapid pops and drops that can make investors rich or broken. Fortunately, the Motley Fool has organized some of our favorite, fairly valued stocks ready to explode. The report is titled "3 Hidden Winners of the iPhone, iPad, and Android Revolution." Everyone knows the mobile revolution is just at the beginning, but hardly anyone knows how to ride it to riches. You can learn how by clicking here now. Don't worry; the report is 100% free.

The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

Enter your email address below to find out what made Jobs so enraged!

Austin Smith and Brendan Byrnes own no shares of the companies mentioned here. The Motley Fool owns shares of Google, Apple, and Microsoft. Motley Fool newsletter services have recommended buying shares of Apple, Microsoft, Dell, and Google and creating bull call spread positions in Apple and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.

Report this Comment On December 02, 2011, at 9:20 AM, chriswb7 wrote:

RIMM has produced incredible growth results across the board like clockwork for the past 10 years. I dont get why they cherry picked this one to steer away from.
Report this Comment On December 02, 2011, at 10:09 AM, mjwclarke wrote:

The trouble is that RIM is causing its investors and the public a lot of anxiety due to its inconsistency. People pay up for consistent earnings meets or beats, and down for unpredictable management and misses. Management needs to get a better handle on this one.
Report this Comment On December 04, 2011, at 12:49 PM, TMFBWItime wrote:

@chriswb7
I agree with mjwclarke's point. RIMM's inconsistency and failure to effectively capitalize on the touch screen market smells a lot like Nokia's late entrance into flip phones among other telecom company's follies.

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