Overcapacity remains in technology sector

It has been another torrid year for technology-related stocks. The events of last September compounded the problems the sector was already experiencing. Capital expenditure plans have been put on hold, while the risk premium and cost of capital has increased. The question on investors' lips is where the technology, media and telecoms story goes from here. I believe the long-term prospects for the sector remain positive for the well-financed companies with strong market positions. The signs, on the face of it, look pretty good. The technology-laden Nasdaq has gained more than 30% from i...