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One need not to be reminded that the technological industry continues to thrive in increasing propensities as the days and years go by. Therefore, one rarely goes wrong investing in technology-oriented company stock. Shares in the likes of mega “techno wiz” giants such as Google (NASDAQ:GOOG), Apple (NASDAQ:AAPL), and Facebook (NASDAQ:FB), can indeed be found on the floors of the widely renowned London Stock Exchange (LSE:LSE).
One company that readily comes to mind in this regard is Bango (LSE:BGO). The mobile payment technology provider has recorded impressive increments in its stock valuation following the agreement it signed with Facebook to provide payment services accessible through the social networking site. Other technological companies that have been doing well as well include Pace Plc. (LSE:PIC) and ADVFN Plc. (LSE:AFN). Pace Plc. is a leading supplier to satellite, cable, and IPTV providers worldwide. ADVFN Plc., on the other hand, is a mobile technology company whose most recent landmark achievement happens to be the release of an online trading application for both iPhone and iPad users.
Another interesting thing with respect to investing in the technology sector is that technological companies usually re-invest profits instead of giving out higher immediate dividends. In this vein, they help to further enhance and assure their own future growth.
Granted, it certainly seems as though technology-oriented companies can rightly be considered to be leaders in the London Stock Exchange and even stock markets the world over. Nevertheless, to build a strong portfolio, prospective investors must endeavor to fully understand the specific sub-market in which they intend to trade. They should also bear in mind how uniquely seasonal, volatile, and diverse, technology stock tend to be. Likewise, they should also bear in mind the respective time horizons of different investments.
It is also important to try as much as possible to diversify investments in technology stock. Spreading investments across flourishing sectors such as telecommunications, information technology (IT), mobile technology, internet software, etc. would certainly be wise, and more than often proves to be highly profitable for discerning investors. A well-built portfolio of technology stocks is bound to surpass alternative manners of investment portfolios in terms of performance.
Furthermore, investors must be adept in making use of stock book values, enterprise multiples, return on equity (ROE), price earning (PE) ratios, and other relevant indicators outlined in companies’ financial statements, to accurately gauge whether a particular company is worth investing in.
