Pimco New York Municipal Income Fund III V.PYN

Primary Symbol: PYN

PIMCO New York Municipal Income Fund III (the Fund) is a non-diversified closed-end management investment company. The Fund's primary investment objective is to seek to provide current income exempt from federal and California income tax. Under normal circumstances, the Fund invests at least 90% of its net assets in municipal bonds which pay interest that is exempt from regular federal, New York State and New York City income. The Fund may invest up to 20% of its total assets in investments the interest from which is subject to the federal alternative minimum tax. The Fund also invests at least 80% of its net assets in municipal bonds that at the time of investment are investment grade quality. Pacific Investment Management Company LLC (PIMCO) serves as the Fund's investment manager.

NYSE:PYN - Post by User

Pimco New York Municipal Income Fund III

Bullboard Posts

Post by pointofreturnon Feb 01, 2012 12:45pm

231 Views

Post# 19474598

The Canuck Tech Discount Exists!

Technology Sector
The Canuck Tech Discount Exists!

.

There's been some discussion in the press recently about Canadian tech names being undervalued, and that this explains at least in part the M&A activity in the sector. We thought we'd look to see if Canadian tech names are indeed undervalued in general.

We did a comparison of Canadian and U.S. mid cap ($75 million - $1.5 billion in cap) tech names using Bloomberg under the following criteria:

- Long Term EPS Growth;

- P/E Ratio; and

- EBIT Margin.

On average, Canadian tech companies are valued at a 23% discount to their U.S. peers in the Software sector and a 34% discount in the Hardware sector, while having higher EBIT Margins and EPS Growth in both sectors.

We note that the Hardware names seem to offer a steeper P/E discount than the Software names. This may explain why several of the recent acquisitions in Canada have been hardware names - RuggedCom, Gennum and Zarlink.