Tags: Cassese | old | tech | stocks

BlackRock's Cassese Likes Old Tech Stocks

By    |   Tuesday, 22 April 2014 12:59 PM

The shares of old technology companies, including Microsoft, Qualcomm and Intel, are poised for gains, says David Cassese, manager of the BlackRock Equity Dividend fund.

"You started out having attractive valuation, companies becoming increasingly dividend-focused, cash-return focused, and that's attracting attention," he told CNBC.

"But ultimately, there are several of these old tech companies that are going to cross the chasm," he explained. They're going to make it into the new tech world where the world's going."

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Cassese likes the changes being made by Microsoft's new CEO Satya Nadella.

"He's taking the company to where the world is going: cloud, applications, server and tools. And, most importantly, they have the assets to compete there," he noted.

Microsoft is "taking the market's attention away from the consumer-based Windows business and showing the world Azure, and server and tools, and Office365," he argued. "These are some amazing assets that make up 85 percent of the profits and this company, and those assets deserve a higher multiple."

As for Intel, it will benefit from its data center and "Internet of things" businesses, Cassese maintained.

While the tech-heavy Nasdaq Composite index has dropped 5.9 percent since March 6, Microsoft has gained 4.9 percent, and Intel has climbed 9.8 percent.

Cassese isn't the only one singing the praises of old tech. David Katz, chief investment officer of Matrix Asset Advisors, told CNBC that he goes for the "dull" and "old" tech stocks over the shiny and new.

That means Microsoft and Cisco Systems rather than Facebook, he noted.

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InvestingAnalysis
The shares of old technology companies, including Microsoft, Qualcomm and Intel, are poised for gains, says David Cassese, manager of the BlackRock Equity Dividend fund.
Cassese, old, tech, stocks
276
2014-59-22
Tuesday, 22 April 2014 12:59 PM
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