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Large US tech stock now looks undervalued after earnings miss

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This week we are tipping a large cap US tech play which has been over-sold, in our view, over the short term. With positive sentiment returning to the US tech market, we think this solid returner is looking a little undervalued.

We bought stock at $174 which is well off the 52 week high of $215. The company is a hardware and software distributor which got ambushed a little when it reported Q1 sales numbers that fell short of analysts' predictions on Wall Street. They had been looking for about $5.4bn in sales with flat earnings of $2.20 per share.

The stock is going into our short term trading portfolio with a 10% trailing stop loss. We think it should be able to attain a $210-220 price mark in the next 3-4 months.


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