Technology Sector SharpPlot version is 2.43 Paint the paper ===== Border ===== Region ===== X-Axis Ticks ===== X-Axis tickmarks Y-Axis Ticks ===== Y-Axis tickmarks Axes ===== Y-axis labels 1.4 1.5 1.6 1.7 1.8 1.9 2 2.1 2.2 2.3 2.4 2.5 2.6 for X-axis labels 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Heading, subheading and footnotes ===== Heading Technology Sector Subheading Gross Profit Margin vs Relative Stock Price Index Footnotes Comment Start of Line Chart =========== Points follow ... Line Y-Axis Ticks ===== Y-Axis tickmarks Axes ===== Y-axis labels 42 44 46 48 50 52 54 56 58 60 62 Start of Line Chart =========== Points follow ... Line bump key Key ===== Key - Line Key - Line Sector Relative Price Index Gross Profit Margin Technology Sector

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Tuesday, January 16, 2018: The share price index of the Technology Sector has advanced by 36% relative to the Otos Total Market Index since the June, 2013 low. Current relative price to sales is at the upper-end of the range in the record of the Sector.

Last week the share price index of the Technology Sector advanced by 1.2% compared to a 1.5% advance for the Otos Total Market Index. Gaining stocks in the Technology Sector numbered 145 or 75.5% of the Sector total compared to a 30.1% gaining stocks frequency across the 3979 stocks in the Otos U.S. stocks universe.

There are 41 stocks in this Sector with unusually depressed share prices. There are no current buy decisions in that group. Last week there were no depressed-share-price buy ideas in this Sector.

We have collected third quarter sales data for 191 of the 192 comparable record companies in the Technology Sector representing100% of the capital value. The Sector capital weighted average sales growth rate is 16.8%. The proportion of Sector market capital accounted for by rising sales growth companies is up to 62.9%, compared to 57.2% last quarter.

Currently, sales growth is high in the record of the Technology Sector and higher than last quarter.

The proportion of total market capital accounted for by rising gross profit margin companies is down to 43.7% compared to 47.7% last quarter.

The Sector is recording a low and rising gross margin. Inventories are up, diminishing the chance of a future increase in the gross margin. SG&A expenses are low in the record of the Sector, but falling. Higher gross margins and lower SG&A expenses are producing a leveraged acceleration in EBITDA relative to sales. The shares have been very highly correlated with the direction of the profit margins. Interest costs are low in the record of the Sector and rising. Higher interest costs not only slow the free cash flow growth rate of the Sector, but are often associated with lower valuation.

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There are no industries within this sector showing growing strength in fundamentals compared to this time last quarter. The industries in this sector showing growing deterioration in fundamentals compared to this time last quarter are Aerospace & Defense, Computer Software, Connectors & Distributors, Electrical Equipment and Semiconductors.