At the moment everybody is focusing on the resource sector, including me but this might be creating value in other in sectors such as retail and technology. Here is what Huntley says about the technology sector. "Sector Outlook Strong
The outlook for the IT services sector in the medium term is positive. Global advisory firm IDC forecasts annual compound growth in the Australian IT services market of 6.8% with expenditure reaching $14.6bn in 2008. IDC identified selective outsourcing as a key growth area. Corporations and government agencies tend to spend the remainder of their IT budgeted capex in the June quarter. Hopefully the recent decline in business confidence will not result in companies deferring IT spending especially in the important June quarter. If cash flows were impacted then customers could continue to rely on legacy systems and defer spending. This point alone does not dampen our enthusiasm for the sector as this action would be a deferment rather than a cancellation of expenditure.
Recent share price weakness reflects negative market sentiment towards small caps rather than a reflection of CDR's own outlook. While this weakness may last a little longer, CDR is likely to appreciate substantially over the medium term. CDR is a growing business which boasts a significant recurring revenue component and a strong brand. Upgrade to Buy. "
CDR Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
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