19 May 13 15:02–Stock indices continue to break records, but, in contrast to the euphoria of the technology stock bubble of 1999, or the “irrational enthusiasm” of which then Federal Reserve chairman Alan Greenspan spoke in 1996, this time round, the rises are accompanied by several fears. Paradoxically, these fears fuel the rises. Cisco (CSCO), for example, would not have reached a multi-year peak after releasing reasonable results last week, were it not for the fears before the release that it would miss like all its rivals.
Cisco joined Microsoft (MSCO), which broke through its multi-year peak earlier in the month, just when it was being written off because of the collapse of the PC market. These two will shortly be joined by Intel (INTC), which has already corrected by more than 20% from the low of late 2012, to which it fell because of the PC market. Investors believe the message of new CEO Brian Krzanich, that, sooner or later, Intel will also be a significant player in the smartphone and tablet processor market.
Another stock that has reached a new peak is SanDisk Corporation (Nasdaq:SNDK), which is back at $60, which it last saw in the summer of 2007, before declining to a low of $5 in the crisis of 2008. CEO Sanjay Mehrotra took over the reins at the company from his co-founder Dr. Eli Harari two and a half years ago at a share price of $50. Only now, after rebuilding the company’s senior management and outlining a new strategy, has he managed to bring the share price back to where it was six years ago…Read More>>