With more and more of the major corporations bleeding red ink and announcing gloomy employment news, technology appears to be where the markets are at. In early February, with the Dow Jones and, indeed, Toronto's markets reacting to each piece of unfortunate news by turtling and going under the waves, the NASDAQ indexes on both sides of the border look to be the source of inspiration and leadership.
On February 5, the NASDAQ index in the States had climbed nearly two-dozen points by noon hour, and its Canadian counterparts also up, albeit only slightly, despite Microsoft making 5,000 job cuts to its worldwide workforce, and Japanese electronics giant Panasonic, which announced layoffs in the tens of thousands.
Even so, analysts believe that the bottom is drawing near for markets around the world, but with the stipulation that investors would have to step in, with faith in their hearts and bucks in their jeans, and assume some of the pain of carrying stocks out of their doldrums.
Analysts note that the market took about three and a half years to recover after the 2002 bear market that followed the tech bubble, particularly south of the border, yet, when it did, the market rebounded 14.86 per cent in the year following the stock markets bottom.
Historically, the recovery takes about twice as long as the decline, regardless of who leads that recovery. But for those ''with the stomach and capital to wade back in,'' to quote one analyst, investing at market lows in the past has translated into gains of 40% and more for those who buy and then wait out the bounce-back.
The good news, at times like these, is that there are bargains out there; one of them, Toronto-based Guestlogix Inc., recently learned that a leading U.S. airline carrier has chosen its Mobile Virtual Store(TM) platform for its on-board retailing initiatives. An official launch is expected for March.
GuestLogix Inc. (TSX-venture: GXI) is the leading provider of on-board retail technology and solutions to the passenger travel industry. With a customer base comprising seven of the top 10 global airlines the Company maintains agreements to serve nearly 30 per cent of the world airline passenger traffic through its technology platform.
Its shares, which trade on the TSX-Venture under the ticker symbol GXI, were trading in the first week of February around 46 cents, in the lower end of a 52-week range which showed a peak of $1.80 and a gully of 35 cents.
By: AllPennyStocks.com
