Old tech is new darling of equity income investors

The more mature technology companies,
such as Apple, Cisco and Microsoft,
are all paying cash back to investors.

Technology stocks have never been the best friend of the equity income investor. Until the financial crisis struck in 2008, the yield on the MSCI Global Technology index remained resolutely below 1 per cent, with many tech companies simply not having the free cash flows to pay meaningful dividends. Those that did generally preferred to splurge on acquisitions as they chased market share in a frenetic land grab.

And even after the global stock market sell-off briefly pushed yields above 2 per cent in late 2008 and early 2009, they sank back to little over 1 per cent in 2010.

However, yields have since climbed back above 1.5 per cent and some equity income fund managers, at least, are starting to take note.

“Traditionally, technology companies never really paid dividends, so we were unable to make investments, resulting in us being structurally underweight technology for a long time,” says Nick Clay, co-manager of the £4bn Newton Global Higher Income fund.

“However, of late some of the more mature technology companies have started paying dividends and are increasingly doing so. You have the likes of Apple, Cisco and Microsoft, which are all paying cash back to investors.”

Jill Cuniff, president of Seattle-based Edge Asset Management, which manages $7bn in equity income funds, adds: “Back during the tech boom a lot of people thought these companies could not grow and [simultaneously] pay a dividend.

“We don’t think that is true. A lot of them are sitting on a lot of cash. M&A [merger and acquisition] activity has slowed down, therefore a lot of that [cash] is flowing back to shareholders in terms of dividends and buybacks. We don’t believe this is temporary.”

Mr Clay’s Newton fund now has a higher allocation to technology stocks than at any point since its launch in 2005, with its 8.1 per cent weighting only a little below its benchmark of 9.5 per cent.

Tech Reviews by The Corliss Group

Innovation and technology vital to Hong Kong's future competitiveness and productivity

On April 16, IT sector lawmaker Charles Mok was the mover of a joint statement backing the setting up of an innovation and technology bureau and urging fellow legislators not to mount a filibuster during the debate on this issue.

A filibuster is characterised as a form of obstruction in a legislature. It is a strategy employed by minority representatives to give them some leverage in defence of their constituents' interests. Executed shrewdly, it can be a David and Goliath tactic that can be successful.

Hong Kong has been criticised for lagging behind its rivals in cultivating a new sustainable economy. The performance of its economy over the last decade has been unimpressive. In real terms, average personal incomes have seen little or no growth, meaning Hongkongers' lives have not improved.

Also, Hong Kong's increasing economic reliance on mainland China is a cause for concern. If the SAR's free economy is homogenised with the mainland's towering planned macroeconomics, there could be unforeseen and dangerous consequences.

I am vice-chairman of a think tank advocating innovation and technology. Those lawmakers planning a filibuster need to be told that the only logical path to preserve Hong Kong's economic independence and core values lies with continuous enrichment in innovation and technology. They are vital to prolong the city's global competitiveness while maintaining its productivity against systemic risks such as an ageing workforce and obsolete human resources.

The proposed innovation and technology bureau can formulate policies to reinvent Hong Kong, help legislate against technology crimes and attract foreign investment and talent.

Tech Reviews by The Corliss Group

What You Want, When You Want It: How 3D Printing Appeals to the Everyday Consumer

3D printing continues to be a global spectacle in 2014, making appearances from Las Vegas during International CES and Barcelona during Mobile World Congress.  With the 3D printing industry predicted to reach $10.8 billion by 2021, many are asking how it will change the future of the consumer landscape, much like MP3 players and iPods transformed the music industry.  While the answers may not be obvious, there are a number of ways 3D printing will impact the daily lives of consumers in years to come.

3D printers are able to reproduce
shapes of increasing complexity.
(Photo from THECOURIER.CO.UK)

Opening the door to customization

A major appeal to everyday consumers is how 3D printing opens the entryway to customization.  From custom jewelry to food, the possibilities when using a 3D printer are endless.  As 3D printers become more accessible over time, so will the ability to print items that are extremely personalized and tailored to each user.  If we think about most of the products we buy, they are commoditized in some way for the average person; jeans are a certain length and cabinet handles come in standardized sizes.  3D printing allows consumers to create items exactly the way they need or want them – ultimately, letting customers set their own parameters.  Companies like Nokia and New Balance, for example, have taken to the 3D printing trend and now offer online services where consumers can customize their own 3D printed cell phone case or sneakers, respectively.

Creating at home convenience

Beyond the ability to custom 3D print apparel and gadgets, there is massive potential in at-home 3D printing.  The average consumer can easily use a 3D printer to produce everyday items like plates, utensils, and home furnishings.  At its core, 3D printing at home is about being able to conveniently download and print a model of nearly any item a consumer may want to make their living space more comfortable and appealing.

Tech Reviews by The Corliss Group

A Smart Way to Replace Your Samsung Galaxy S4 with New Galaxy S5

If you are a gadget enthusiast and aching to have your hands on Galaxy S5 or you just cannot since you have your Galaxy S4 from the previous year, you have a way to work it out. Consider trading your device with your carrier for a credit to your new phone. To get the most of your device, you can sell your phone, which you have lots of options.

Here are some of them:

EBay

EBay provides you a marketplace for your items where predictability is less. Auctions can give you more or less earnings. Posting and managing items for sale are quite tedious until eBay introduced My Gadgets which will help you create a listing. You may list what you own and My Gadget will tell you how you can make based on eBay price trends if you sell it. EBay may not be the best choice for making more money with regard to selling your handsets. But it is usually a site where you can locate items which are extremely low or high demand or those which are difficult to find.

Amazon

Amazon is one of the most convenient ways to sell your old phone with some drawbacks. Find your device on Amazon, click the "Sell on Amazon" button and provide details. You then have a listing and after some time, you will have a buyer. You ship the item, confirm the shipment to Amazon and request the money transfer to your account. On the side, you will be dealing with the buyer through email and get a high-profile listing on Amazon. There will be competition with other sellers though, which can put the prices down. In exchange of convenience, this option may not be the best in terms of monetary benefits.

Craiglist

Craiglist is making local selling possible, easy and fast, although you have to make the bargaining yourself with many buyers. Some do not go to Craiglist for these very reasons and want to avoid a headache. But if your device is highly in demand, you can use Craiglist to the max and have your money immediately.

Facebook Marketplace

The Facebook Marketplace is a mix of the benefits and drawbacks of online and local selling like selling in Craiglist but not limited to the locality. You can post your listing and share it with others. There are sites which you can also sell your smartphone. They offer buyback programs and provide some selling services. Examples are uSell, Cell Circle, Gazelle, Nextworth and UpgradeSwap.

You can make the most money when you take time to explore these options and compare prices. For example, eBay's asking price for Galaxy S4 ranges from $70 to $397 based on the phone's condition while uSell is from $35 to $182. It varies more in Craiglist, which ranges from $180 to $550. Offering in Gazelle is $50 to $193, Nextworth is $33 to $128 and UpgradeSwap is between $85 and $230.

Tech Reviews by The Corliss Group

Foxconn Sells Communications Technology Patents to Google

Tech Reviews by The Corliss Group--Foxconn, which assembles gadgets for companies such as Apple Inc., said it has sold a number of its communications technology patents to Google Inc. for an undisclosed sum.

Taiwan-based Foxconn, officially known as Hon Hai Precision Industry Co., made a name for itself in contract manufacturing by making Apple's iPhones and Sony's PlayStation game consoles. But few know the electronics manufacturer has been developing new technologies and has a sizable patent portfolio. In a statement, the company said it has applied for 128,400 patents and has been granted more than 64,300 patents world-wide.

Photo credited to INDIATIMES.COM

In the highly competitive technology industry, companies are challenging each other to set industry standards, which has led to a few patent cases.

Google, which is battling with Apple for mobile dominance, has continued to strengthen its patent portfolio through acquisitions. The Internet giant's purchase of Motorola Mobility in 2011 gave it a formidable patent portfolio, and protected its Android mobile operating system and partners from legal threat from competitors, including Apple and Microsoft Corp.

Foxconn, which also sold some head-mounted display technology patents to Google for an unspecified amount last year, was one of the top 20 U.S. patent owners in 2013, according to Manhattan-based patent advisory company Envision IP.

"Foxconn can make use of its immense U.S. and global patent portfolio, and possibly offer commercial licenses to its customers," said Maulin Shah, managing director at Manhattan-based patent advisory firm Envision IP said. "The company could charge a premium by offering patent licenses integrated with manufacturing contracts, a luxury which many of its competitors may not have."

Foxconn said it would continue to invest in technology research and development, "transforming such investments into valuable intellectual property assets." It declined to provide further details.

Google declined to provide immediate comment.

Hong Kong Making Efforts to Become Tech Hub, Welcomes Canadians Entrepreneurs

I recently finished a trip to Hong Kong to attend the International ICT Expo as part of a Canadian Trade Mission. The trip really opened my eyes to the focus and resources that Hong Kong is putting behind becoming a big player in the tech space.

Historically, Hong Kong has been a prosperous shipping port due in part to its deep water access for large vessels. It has also become a key financial center for the region. Just as a reminder, control of Hong Kong reverted back to China (from the UK) in 1997. However, the Chinese have wisely implemented a 50-year transition period to ensure stability until the move is completed.

The local government and residents alike lovingly refer to this period for Hong Kong as “One Country with Two Systems." Of course, those two systems are the Chinese legal system and the UK influenced international legal system used in Hong Kong for the past several decades. It will be interesting to see the amount of influence that China will exert on HK in the near future, but even more interesting will be how much influence HK can exert and make changes in Chinese system.

Fortunately, I was sitting by the window as we prepared to land in Hong Kong. Seeing the beauty of the outlying islands on approach reminded me why over seven million people find this a great place to live. After the 14-hour flight from Vancouver, all I could think about was getting to my hotel. When there, I fought the urge to sleep, showered and headed to the Dim Sum restaurant right there in my hotel. For someone like me from North America, it was a big deal to have a dim sum place that close, but I soon found out that dim sum was on almost every corner in Hong Kong’s Central district.

Hong Kong has long been known as the gateway to China, but here are a few fun facts about the state of technology in Hong Kong:

·         Hong Kong has over 7.15 million inhabitants, and is one of the most densely populated cities in the world.

·         Its ICT sector has roughly 17,000 companies that generate CAD $197.4 billion in revenue, representing 6.1% of Hong Kong’s GDP.

·         There are 20,000 public Wi-Fi access points covering 426 square miles of the metropolis.

·         The Hong Kong government will spend nearly CAD $1 billion on IT expenditures during 2013-2014.

·         4G LTE was rolled out by all five mobile network providers in 2012.

·         87% of homes have broadband with an average speed of 60 Mbps, ranked as one of the world’s highest in a recent report by Akamai Technologies. In some cases, the speed reaches 1,000 Mbps, and provides inhabitants with access to over 700 TV channels in this metropolitan market.

The International ICT Exhibition was held in conjunction with a huge consumer electronics show. It was Asia’s version of the annual CES show in Las Vegas. The first day of the show was Sunday, and tens of thousands of Hong Kong’s residents visited the Convention Center that day to see the latest gadgets. There was a sea of young people that packed the aisles that day of the show. I even saw young families with their kids making a Sunday afternoon excursion to attend the show.

Tech Reviews  by The Corliss Group