He is not impressed with valuation level of the Tech sector. In the tech sector, the only two names he would recommend are high-tech equipment provider: Applied Materials Inc. (AMAT) and KLATencor Corp. (KLAC). “Both of which have very very strong competitive positions, what we would call wide economic moats. A far amount of upsides to the shares, but again pretty economically sensitive, and really some of the only values we are seeing in technology right now.” Commented Pat Drosey.
1. Applied Materials Inc. (AMAT)
Applied Materials provides Nanomanufacturing Technology solutions for the global semiconductor, flat panel display, solar and related industries, with a portfolio of equipment, service and software products. . Applied Materials Inc. has a market cap of $18.16 billion; its shares were traded at around $13.62 with and P/S ratio of 3.62. The dividend yield of Applied Materials Inc. stocks is 1.76%. Applied Materials Inc. had an annual average earning growth of 7.8% over the past 10 years.
2. KLATencor Corp. (KLAC)
KLA-Tencor Corporation is is a supplier of process control and yield-management solutions for the semiconductor and related nanoelectronics industries. Klatencor Corp. has a market cap of $6.18 billion; its shares were traded at around $36.19 with and P/S ratio of 4.07. The dividend yield of Klatencor Corp. stocks is 1.66%. Klatencor Corp. had an annual average earning growth of 16.4% over the past 10 years.
Watch the video (Tech companies are about half way through the video):