Holland & Company Chairman, Mike Holland, in an interview with CNBC’s Sue Herrera, provided his opinion on the Technology sector, and mentioned several companies that he is fond of, such as Intel Corporation (NASDAQ:INTC), Google Inc (NASDAQ:GOOG), Apple Inc. (NASDAQ:AAPL), or International Business Machines Corp. (NYSE:IBM), which in his opinion are undervalued.
“I think the answer is clear to me that there’s very attractive potential upside to the stocks at these levels,” he explained.
He told Herrera that Intel Corporation (NASDAQ:INTC) is an incredible pick up in yield in a non-yielding world, taking into account that the stock trades at 14 times current earnings. In addition to this, the earnings yield of 7% provide people with double digit value when they buy Intel today, in Mr. Holland’s view.
Holland mentioned that he is also inspired by what Intel Corporation (NASDAQ:INTC) CEO Brian Krzanich said in recent interviews. Particularly, he considers that Intel has an “attractive package of potential products and strategy going into the future.”
Meanwhile, Holland thinks that there is a similar story in old technology companies like Google and IBM. He noted, however, that there is a bubble in some corners of the stock market pertaining to technology companies. He told Herrera:
“But I think, Sue, that what you have is a situation where at the extreme edge, the Twitter’s [valuation], right through to the Uber’s [valuation], Tesla’s [valuation], you have a fringe element in the stock market that we have seen before, which is ridiculous valuations, when you have things like International Business Machines Corp. (NYSE:IBM), Google Inc (NASDAQ:GOOG), Apple Inc. (NASDAQ:AAPL), and Intel Corporation (NASDAQ:INTC). These are crazy low valuations versus crazy high valuations. There certainly is a bubble and that bubble started getting punctured a few months ago.”
Watch the full video below:
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