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JMP Securities President Mark Lehmann on the outlook for the technology and whether investors can still profit from the sector’s rally.
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Two -- to have you will tech stocks.
Are on a -- so far this year lifting the NASDAQ nearly 15% and we've got a money manager who says there is still time to buy those names in the NASDAQ if you know where to invest joining us now to tell us mark Lehmann president JMP securities.
The NASDAQ has had the best start since the year 2000 so let's get right to it you say there's still room to run but in what what area we often -- the NASDAQ.
The so called tech heavy NASDAQ but is it technology or something else -- -- lot of different sectors in here.
It is technology and those who it is an area we like a lot of champion securities we've clearly has seen a run of the beginning of the year and some.
Major moves in some very large stocks but we think there's still more room in Iran and 2012.
Marks the Wall Street Journal answered the question today you know why is this not the same tech bubble that we saw on 1999 -- had a great article explaining.
Why this is different this -- run up is differ from nine ER one of the biggest issues is we have much better valuation for stocks right now that we did back then right now.
The NASDAQ is 23 times earnings back in 1999 he was 78.
Times earnings so that's a significant difference.
It is a big difference David and what you also have -- real revenue growth and real profitability real cash flow growth.
Companies we like like Salesforce.com.
Are growing.
40%.
Year over year and these are big multi billion dollar companies that are still gaining huge market share these are not ideas that are great these are companies that are great.
And we think there's more room to run of these companies.
And let's get some of those companies because of course if you were to break -- -- there's the hardware the software there's the cloud it.
-- social media what are your three favorite names right now.
So I mentioned one -- -- dot com which is obviously a big plan and the software as a service markets the SaaS market cloud computing.
Again they grow very rapidly year over year in their most recent quarter we think that's gonna continue.
Aruba Networks is one and our analyst Eric -- likes a lot that's a plan mobile computing for large enterprises people using their own devices on there.
Corporate systems and that's obviously a trend that's gonna continue and we think that's in its infancy.
And a smaller name response -- marketing symbols and KTG.
And other software as a service and we like.
Getting companies to be more productive on their email on their social on their mobile.
Three names three -- -- market cast but I think they're gonna benefit through the rest of 2012 mark Lehman from JA MP securities work terrific stuff thank you very much appreciate -- Thank you see in --
