Rethink Your Definition of 'Tech Stock'

 | Apr 20, 2012 | 12:55 PM EDT
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I am loving these technology company earnings. No, I am not talking about Microsoft (MSFT), which was pretty darned good, or (CRM), which has been terrific.

I am talking about the new technology companies, companies like Under Armour (UA), like PPG Industries (PPG), like Honeywell (HON), like Schlumberger (SLB).

These are the companies that are developing and innovating and taking share for doing so. Under Armour, the apparel company, had developed new forms of fiber that are lighter weight but tough that athletes love. Its technology is what's driving sales, including the spectacular numbers it put up today.

PPG has made technological breakthroughs in the coatings industry that have made that firm's coatings the envy of the world. We don't think that tech can play a role in something as mundane as paint, but it isn't just because PPG has been able to sell paint better than the other guys -- its coatings are regarded as so superior to the rest of the world's coatings that the Japanese and Chinese carmakers demand PPG's materials to be able to maintain higher price points than they would otherwise command.

Honeywell's turbo technology has been a major difference-maker when it comes to fuel consumption. You ever wonder why cars get higher miles per gallon these days? A large part of it is because Honeywell makes turbo engines that save gasoline.

Finally there's Schlumberger. When you listen to this company, you hear how we were able to find much more oil and gas than we thought our country had. Schlumberger is about scientist and engineers finding inexpensive and safe ways to get more fossil fuels out of the ground, and they are the best at it.

Until people realize these are technology stocks, they will remain cheaper than they should be, and the stocks will continue to go higher because of their amazing innovations that are the envy of the world.


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