February 06, 2013 at 09:01 AM EST
Tech Companies, Catalysts to move Higher this Year
Tech Companies, Catalysts to move Higher this Year

It seems that the experts have constantly touted the irrelevance of the personal computer industry for the future. Smartphones and tablets have become the norm in the business. In fact, shares of PC giants such as Intel (NASDAQ: INTC), Hewlett-Packard (NYSE: HPQ) and Dell (NASDAQ: DELL) are trading at low multi-year valuations.  Take a look at PC Connection (NASDAQ: PCCC).


It seems that the experts have constantly touted the irrelevance of the personal computer industry for the future. Smartphones and tablets have become the norm in the business. In fact, shares of PC giants such as Intel (NASDAQ: INTC), Hewlett-Packard (NYSE: HPQ) and Dell (NASDAQ: DELL) are trading at low multi-year valuations. While the near-term sales growth of PC makers will be lower, there is a big probability that they will recover as they quickly adapt to the ever-changing consumer needs.  Looking back, it is amazing how Big Blue International Business Machines (NYSE: IBM) has managed to stay in the game despite the constant changes of the industry. 


Over the past few years, the market has been selling these stocks indiscriminately giving astute investors opportunity to buy into good names. PC Connection (NASDAQ: PCCC) is one good business that the market has written off. This $327 million company is a direct marketer of various information technology solutions. It helps companies design, enable, manage and service their information technology environment. Its products include computer systems, software and peripheral environment.


It recently reported its full year results. Net sales for the year reached $2.2 billion, an increase of 2.6% compared to the same period last year. During the year, there were mixed results among its product segments. Both notebook and software sales increased while desktop and server sales registered a decline.


Net income amounted to $33.1 million, or $1.24 per share. This is higher than the previous year’s $28.8 million, or $1.07 per share. Excluding special charges related to retirement and severance payments, pro-forma net income would have been at $33.8 million, or an increase of 18.7% from the prior year. This is higher than its 5-year average earnings growth rate of 14.94%.


Analysts expect the company to post $1.29 earnings per share this year, an increase of 1.60% from the previous year. However, the company is projected to post earnings growth of 25% over the next 5 years. More importantly, the company has significantly cash reserve of $39.9 million, compared to the previous year’s $4.6 million. This gives investors assurance that the company can withstand stressed environments. It will also give them financial flexibility to pursue value-accretive growth expansions.




At present, the stock is trading at inexpensive levels at 10.38 times earnings. For the last 5 years, its stock has traded between 10.32 times and 13.34 times. The market is still not convinced that PC Connection has strong prospects in the future despite better than expected earnings growth and special dividend payment. Moving forward, management sees better top-line growth and overall profitability. This should be one of the catalysts for the stock to move higher this year.




NEW:  Feature your company on EmergingGrowth.com.  Find out how by filling out our referral form here…  http://emerginggrowth.com/recommend-a-company-to-feature-on-emerging-growth


About EmergingGrowth.com


By offering 100% original and unmatched content by the best financial reporters, writers and bloggers in the business, EmergingGrowth.com is emerging as a leading digital financial media portal. Its services provide users, subscribers and advertisers with a variety of content and tools through a range of online, social media, mobile and other mobile outlets.


Since its inception, EmergingGrowth.com has distinguished itself from other financial media companies with its sly approach to reading between the lines in order to locate that needle in the haystack.  Sign up today to see what EmergingGrowth.com has to offer.







Join our Linked in Group…  http://www.linkedin.com/groups/?gid=4650356&trk=hb_side_g


Like us on Facebook... http://www.facebook.com/pages/EmergingGrowthcom/474647062557938


All information contained herein as well as on the EmergingGrowth.com website is obtained from sources believed to be reliable but not guaranteed to be accurate or all-inclusive. All material is for informational purposes only, is only the opinion of EmergingGrowth.com and should not be construed as an offer or solicitation to buy or sell securities. From time to time, EmergingGrowth.com receives compensation by the companies profiled in its emails, press releases or on its website, or simply holds stock in them. If any compensation is received, or any position is currently held it appears fully detailed in a “special disclosure” on our website as well as on any pages or emails where that company is located.  Please check the "Special Disclosure" link (http://www.emerginggrowth.com/special-disclosure) and consult an investment professional before investing in anything viewed within.  When EmergingGrowth.com receives shares for compensation it intends to sell those shares.  In addition, Please make sure you read and understand the Terms of Use, Privacy Policy and the Disclosure posted on the EmergingGrowth.com website. Always remember that investing in securities such as the ones listed within are for high-risk tolerant individuals only and not the general public. Whether you are an experienced investor or not, you should always consult with a stockbroker, financial advisor, or similar before purchasing or selling any securities viewed on any emails sent from EmergingGrowth.com or its website.


Related Stocks:
Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here