Tech Valley News
Tech Valley TechWatch Ends Year on High
Publicly traded technology companies in New York’s Tech Valley outperformed the national indices over the past year, despite the Tech Valley TechWatch remaining relatively flat for the fourth quarter of 2005.
The Tech Valley TechWatch closed out 2005 8 percent higher than year-end 2004, beating both the Dow Jones Industrial Average, which was up 2 percent, and, the S&P 500, which was up 6 percent; the NASDAQ gained 10 percent. However, the TechWatch is up almost 20 percent since its January 2004 inception – handily beating major market indices for the two-year period – including the Dow Jones, which was up 3 percent; NASDAQ, which gained 10 percent; and, the S&P 500, which was up 12 percent.
While the TechWatch was almost flat in the fourth quarter of 2005 (down 1 percent) and the major market indices showed modest gains, some individual companies within the TechWatch demonstrated significant growth in the last quarter of the year. Those firms include Angiodynamics (ANGO), which was up 18 percent, and Intermagnetics General Corporation (IMGC), which was up 12 percent.
A joint project of the Albany-Colonie Regional Chamber of Commerce and Capital Financial Planning LLC, the Tech Valley TechWatch was established to track the performance of a representative group of 15 stocks involving high-tech firms that have headquarters, major research facilities or a significant employment presence within Tech Valley. The main product or service of TechWatch companies is technology or technology-related; excluded from the list are firms that have share prices below $5 – also known as “penny stocks” – and those that may only have a small portion of revenues derived from technology or technology-related business.
“Technology is a multi-faceted market sector comprised of vastly different companies building upon different ideas,” said Todd Slingerland, co-founder of the Tech Valley TechWatch and managing partner of Latham, NY-headquartered Capital Financial Planning LLC, an investment and financial services firm with offices in seven states. “The Tech Valley TechWatch is comprised of a wide range of technologies, with companies at different growth stages sharing the common bond of innovation.
“On a yearly basis, you can never be sure who’s going to be on top, and who is going to lag far behind,” he said. “It is important to look at each company’s unique risk factors and individual risk tolerance when considering investment. 2006 may offer some interesting surprises in the Tech Valley TechWatch, and I look forward to seeing them.”
“The Tech Valley TechWatch has helped us to learn more about the accomplishments of both new and seasoned companies throughout Tech Valley,” said Lyn Taylor, president of the Albany-Colonie Regional Chamber of Commerce. “I am very excited to see what will unfold in the coming year. If we remember what our lives were like before technologies such as email, personal computers, iPods, PDAs and microwaves, it really is extraordinary to think how far we have come in a relatively short period of time. The companies in the TechWatch will undoubtedly help to shape our lives in the future.”
Because of the heavy market cap weighting of companies such as GE, IBM, Verizon and Time Warner, tracking the portfolio in terms of dollar investment – giving each stock equal weighting – helps to illustrate the impact of price changes by each individual company without it being overshadowed due to its smaller size. This method also will enable the potential addition of other companies.
Data provided for informational purposes only. Not a solicitation or recommendation for investment. Investors cannot invest directly in an index. Investing in early-stage technology stocks carries risks, including potential loss of value, which may not be suitable for every investor’s risk tolerance or objectives. Seek professional advice before taking any action concerning your portfolio. This is a hypothetical illustration only; actual investment in this portfolio has not been made. Registered Representative of and securities offered through ING Financial Partners, Inc. Member SIPC. Capital Financial Planning, LLC is not a subsidiary of nor controlled by ING Financial Partners, Inc.
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