Elazar was launched in 2004 by Chaim Siegel and has served famous hedge fund clientele who demand a keen understanding of drivers of individual companies and financial markets. Chaim twice worked for renowned trader Steve Cohen of then-SAC Capital (now Point72). He was also a partner at JLF Asset Management which was funded by George Soros. Previously he was one of seven analysts on a $13B mutual fund at Morgan Stanley Asset Management. Elazar Advisors publishes its research into the Reuters/Refinitiv Institutional Platform and Factset where Elazar's earnings estimates are factored into the Street earnings numbers. Elazar's research is used regularly by fundamental and algorithmic traders and investors at some of the largest mutual fund and hedge fund managers in the world. Chaim has been a 5-Star top ranked analyst in Tesla and other big cap tech companies. Try us with a free trial here . All investments have many risks and can lose principal in the short and l
Early Stages Of A Tech Boom
But when we take a step back the collage starts to form a picture.
We're likely getting confirmation that we're in the early stages of a potential multi-year tech boom.
Look at this one key stat...
Here's some traditional tech companies that did well in the '90s and, guess what, they are starting to do well all over again. Why? They are exposed to traditional corporations' buying habits. Those traditional tech purse strings are starting to open up.
Look at this.
| Calendar | 2017 | 2017 | 2017 | 2018 |
| Q4 A | Q1 A | Q2 A | Q3 A | |
| Jun | Sept | Dec | Mar | |
| MSFT Revs | 25,605 | 24,538 | 28,918 | 26819 |
| 1yr% | 9.1% | 11.9% | 12.0% | 15.5% |
| 2yr% | 9.1% | 16.8% | 14.2% | 23.4% |
| INTC Revs | 14763 | 16149 | 17053 | 16066 |
| 1yr% | 9.1% | 2.4% | 4.1% | 8.6% |
| 2yr% | 11.7% | 11.4% | 13.9% | 16.6% |
Month |
Jul | Oct | Jan | April |
| CSCO Revs | 12133 | 12136 | 11887 | 12463 |
| 1yr% | -4.0% | -1.7% | 2.7% | 4.4% |
| 2yr% | -5.6% | -4.4% | -0.3% | 3.9% |
We look at two year growth rates. That means you take this year's growth rate plus last year's same quarter growth rate. That shows you an underlying trend.
These traditional tech heavyweights that have huge exposure to traditional companies are ALL seeing the same thing, a 2-year acceleration.
Microsoft's 2-year growth rate went from 9% to 16.8% to 14.2% to 23.4%
Intel went from 11.7% to 11.4% to 13.9% to 16.6%
Cisco went from -5.6% to -4.4% to -.3% to 3.9%.
There is no coincidence here.
Tax breaks are seeping in to buying budgets. Also, the economy was stagnant for 10 years. Now that it's finally starting to open up, companies are taking some of that cash to reinvest in tech.
2018's spending is not just going to be limited to tech companies that are exposed to hyperscaler spending. This year's spending is about to broaden out to benefit a wider scope of companies.
That's very bullish.
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