Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Two Ways To Play: Inflation Reaches Tech


Strengthen your portfolio in good times and bad.

According to the Financial Times, the world's largest notebook manufacturers are set to increase prices on notebook computers for the first time, due to the soaring prices of nickel and cobalt used in making rechargeable batters. In addition, labor costs are rising in China where many companies have their manufacturing headquarters.

Companies such as Quanta, Compal, and Wistron are all in talks with Hewlett-Packard (HPQ), Dell (DELL), and Acer on how to manage these prices. In the past, manufacturers have called for price increases but failed to get their customers to agree. Analysts believe this time is different, however, as practically the entire supply chain, nearly 95%, is clamoring for price increases.

Already several companies have agreed to share the burden, and many believe the costs will ultimately be passed onto consumers.

For context, see Professor Lance Lewis' column Gold's 400 Tonne Opportunity.

From the Bull Pen: Professor Lewis notes that we are now seeing inflation in even technology products. Bulls can play the upside in the gold stocks, using this sector as a hedge against inflation. Some plays to consider may be AngloGold Ashanti (AU), Newmont Mining (NEM) or even the gold miners ETF (GDX).

From the Bear Cave: Higher costs. Pressured margins. An already weak U.S. consumer. Bears are considering pressing the downside in these stocks: Dell and HPQ.
< Previous
  • 1
Next >
Position in GDX.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos