CHICAGO - (Business Wire) Zacks.com releases the latest Analyst Interview. Today
’s interview is with senior analyst Steve Biggs, who discusses
Sony (NYSE: SNE),
Palm (Nasdaq: PALM),
NVIDIA (Nasdaq: NVDA) and
SanDisk (Nasdaq: SNDK).
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How far-reaching is this up-cycle, and for how long do you estimate it will last?
Clearly, if economic activity continues to slow, business spending will follow and tech is likely to feel the impact as companies curtail new projects. However, I believe IT spending is likely to remain strong relative to other industries.
Since the burst of the tech bubble in 2000, spending on IT has been fairly restrained. With pre-bubble infrastructure becoming more and more obsolete, businesses will need to continue spending on IT infrastructure to keep pace with capacity requirements.
Which companies would be your main Sell recommendations?
I would avoid consumer oriented companies, such as Sony (NYSE: SNE) and Palm (Nasdaq: PALM). Other companies in my sector that have exposure to consumer end-markets include NVIDIA (Nasdaq: NVDA) and SanDisk (Nasdaq: SNDK). Although I have Hold ratings on the two stocks for a positive long-term outlook, the two are likely to feel the impact of the slowing consumer over the near-term and NVIDIA has already announced a disappointing quarter.
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