Steven Milunovich Since Quotations

Tech valuations have fallen by about one-third since early-September. Although technology stocks are not at bargain basement prices, semis, communication equipment, and hardware are trading at the lower end of their five-year ranges. These sectors are also looking attractive relative to the S&P 500. Wireless, storage, and software remain expensive.

This is the best tech durable goods report we have seen in a while. The book-to-bill increased to 1.07, the best figure since September, while the inventory-to-shipment ratio was flat at 1.14.