Finding value in the telco and information technology sectors is hard for different reasons. Several telco stocks have slumped, amid rapid industry change and sector uncertainty. Many tech stocks have zoomed this year, taking them well beyond value territory.
I noted some promising tech stocks in the past two years for the Switzer Report, among them Afterpay Holdings and data-centre operator Asia Pacific Data Centre Group. Both look fully valued after strong gains this year. Another favoured tech stock, Freelancer, looks better value.
That said, my preference for tech investing is to use a fund approach, either active or index, or invest directly in large offshore tech stocks. ASX has done a good job of expanding the local listed tech sector, but most companies are small and speculative, suiting active investors.