The 5 Best Value Stocks in Tech

Traditionally, tech investors look for growth stories. In this video, Andrew Tonner does just that, using a screen to identify five tech companies that are cheap value stocks. More importantly, you'll also learn something about why it's not enough to look at a low P/E ratio to see whether a value stock is really worth investing in. Western Digital, for example, was influenced by flooding in Thailand, which helped keep its prices high over the past 12 months. Its price structure may not continue once Thailand comes back online. Dig into the details before buying.

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  • Report this Comment On March 17, 2013, at 7:02 PM, snapsnhooks wrote:

    If you want to impress me, make a phone that works.

    Perhaps add it to my eyeglasses, with a crawler on the top with news in the dominant eye, at the bottom put a answer, text, take message, and finally hang up.

    In the less dominant eye, at the top I want my Music selections. The bottom of the lens is a fully functional keyboard, with internet, wi-fi, Local, and cable T-V with HBO....

    On the frame I want stereo audio with sound equal to no other concert hall built ever. All while seeing normally at every thing happening in my surroundings day or night.

    Then, install this invention directly into my head so I no longer need eyeglasses, and every function will work.

    Then you might impress me with a gadget.

  • Report this Comment On March 18, 2013, at 12:02 AM, ErinInRowayton wrote:

    Cray is a Value Stock, BUT not for the reasons stated by this source. For example, the EPS used contains a $140 million one time payment from Intel. Cray is the dominant player in very big computing systems - a niche which is expected to grow rapidly. For example, see ExxonMobil's description of their use of HPC systems in their Nov 2012 Lamp magazine. Currently, Cray has no debt, $8.50 in cash/share, probable record 2013 revenues and about $1 in EPS. It's also reassuring that Intel has dedicated special emphasis to the HPC arena and that Cray is closely aligned with Intel's efforts. Finally, Cray has extraordinary management, employees and customers. So, as MF looks more closely at Cray, can we look for more balanced coverage of a real gem? Thanks

  • Report this Comment On March 31, 2013, at 4:31 AM, DrGoldin wrote:

    CRAY can only be considered a growth stock right now, because it's not cheap by any meaningful metric. Its EV/EBITDA is over 14, after all. ErinInRowayton's comments on CRAY (above) are much more to the point than Tonner's: it's not helpful to use trailing p/e to evaluate CRAY because nearly $4 of last year's $4.27 EPS came from that one big payment from Intel. That said, I don't know that $1 EPS is realistic for fiscal 2013. I've seen analyst estimates in the range of 0.26-0.63--which would make CRAY quite EXPENSIVE (corresponding forward p/e of 36.84-89.27). It's certainly not a cheap stock or a value stock.

    Also ... "North American and Canadian technology companies"? News flash: Canada is in North America.

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