Beware This Tech-Tonic Shift In The Global Technology Sector

by Tony Daltorio, Investment U Research

If you’re betting on a recovery in technology stocks based on third quarter earnings reports from companies such as IBM (NYSE: IBM) and Google (Nasdaq: GOOG), you’re not alone.

While economists and commentators debate the issue, many investors have already placed large bets on a V-shaped recovery for the tech sector.

They have some good reason to think so too, since the tech-heavy Nasdaq composite has risen 70% from its March lows. The problem is, they’re expecting “business as usual” in the industry… meaning they think spending will pick up the way it did in the 1990s.

Kris Gopalakrishman, CEO of Indian tech giant, Infosys (Nasdaq: INFY) – a company in the Xcelerated Profits Report portfolio – sees it differently,

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In nearly every industry there are competitors all trying to grow their revenues and capture the largest market share. Many factors go into play in achieving market domination ranging from aggressive marketing, award winning customer service, an excellent product line, and competitive pricing. But at the end of the day, what truly matters is that sales growth is outpacing the competition.

Data Call Technologies, Inc. (DCLT.OB) offers a wide array of fresh, real-time content information feeds that can be viewed throughout digital signage networks in numerous venues, including airports, sports arenas, banks, clinics, car dealers, manufacturing plants, cell phones, elevators, electronic digital billboards, and many more. As with any business, however, there is competition.

The largest competitor in the digital signage industry is Ronin Technologies, Inc. (RNIN), a company offering a complete software solution designed to address the evolving digital signage market.

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Hanger Orthopedic Group Inc. (HGR) is expected to grow earnings at 15% over the next five years. The company saw revenues rise 6.8% year over year in the second quarter in a tough economic environment. HGR doesn't just have growth, it also has value. The company trades with a PEG ratio of 0.90.

Company Description

Hanger Orthopedic Group operates 671 patient care centers specializing in orthotics and prosthetics as well as distribution centers in 45 states and the District of Columbia.

The company also operates two other business units, Linkia, which provides network management for the orthotics and prosthetics industry, and Innovative Neurotronics, which provides independent research in neuromuscular technologies.

Revenues Jumped 6.8% Year Over Year

On July 28, Hanger Orthopedic Group surprised on the second quarter Zacks Consensus Estimate by 14.81%. It was the third beat out of the last four quarters.

Earnings per share were

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Data Call Technologies Inc. is moving forward with its earlier announced plan to acquire PrioServ, Inc., a private technology service company specializing in the installation, deployment, and management of digital signage systems, in addition to VOIP, corporate networks, and the installation and management of associated servers.

PrioServ’s strong background in the installation and support of digital signage systems fits perfectly with Data Call’s content provision capabilities. PrioServ has been contracted to handle service work for existing networks residing in most of America’s sports stadiums. It has also been contracted to handle digital signage installation for 24 Northern California Bank of America branches as well as 115 Digital College Network installations in colleges and universities all over the country. Data Call digital signage content feeds are used by sports arenas, banks, airports, clinics, manufacturing plants, and a wide variety of other businesses

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Data Call Technologies Inc. is a leading provider of news, sports, weather, financial and other infotainment feeds for the digital signage industry. The company’s information feeds can be seen throughout digital signage networks in numerous venues. These venues include: freeways, airports, sports arenas, shopping malls, elevators, cell phones, etc.

For the fiscal year ended December 31, 2008, Data Call had an increase in sales revenue of 173% from 2007 while decreasing expenses by 49%. Much of the increase in revenue occurred in the last three quarters of 2008. This excellent performance was due to the company’s ability to adjust their capabilities and offerings to reflect the growth and maturation of the digital signage industry.

Data Call chairman, Jim Ammons, noted, “2008 was a landmark year for Data Call. Even though economic challenges have had a negative impact, we are striving to expand

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