Time to scoop up undervalued technology stocks?

Technology stocks have generally been languishing in narrow ranges since the last 'tech' correction in 2004. I remember considering buying Venture stock in Sept '04 at S$15.40 because it looked cheap after the correction from over S$20 earlier in the year.After over 30 months, it is still more-or-less trading(less rather than more) at around the same S$15-16 range.


In the US, stocks like Cisco,eBay and Yahoo fit the same description, while Microsoft, Intel and a host of other tech plays have been base-building since 2002!

I believe the base-building pattern has to be followed by a sharp move up or down, and in this current uber-bullish environment, I would place my bets on a move up rather than down.

Today, I sold my Fischer Tech for a paltry 3.7% gain; though I would love to hold on to the stock, my eyes are fixed on too many pies.

Acma today rewarded me with an 18% surge since my entry into the stock last week, while I paid for my Popular and TSH purchases last week.

Medtecs turned out to be a crap position, the classic chasing the stock error.

Today, I had a hunch about Equation and so entered a small position at 18c(I could have entered at 17.5c if I had acted more expeditiously on my hunch).

One of the stocks in the tech group I'm currently eyeing is Fu Yu:






























As can be seen from the charts above, Fu Yu's stock price is lying on a long-term trend support, and valuations are dredging rock-bottom.

Other stocks in this category which have ever more compelling charts are New Toyo, Surface Mount and Meiban, among many others.

The only ones I own currently are Memory Devices.