Barron's Says Tech Shares May Gain Ground
Sunday September 22, 12:43 pm ET
biz.yahoo.com
NEW YORK (Reuters) - Battered technology stocks with fat wallets like Sun Microsystems Inc. (NasdaqNM:SUNW - News), Commerce One Inc. (Nasdaq:CMRC - News), and Sycamore Networks Inc. (NasdaqNM:SCMR - News) could be poised to rise, according to business weekly Barron's.
Investors in stocks that now trade at or below the value of the cash on their balance sheets could win if business conditions improve or if the companies make cash distributions or are taken over, the paper said in its Sept. 23 edition.
Bigger companies like Sun, Siebel Systems Inc. (NasdaqNM:SEBL - News), and BMC Software Inc. (NYSE:BMC - News) with ample cash hoards relative to their share prices could be a good bet, Barron's said.
Sun faces competitive challenges and has seen an exodus of top talent, but has a great balance sheet, with net cash of $4.3 billion as of June 30, which is about half of Sun's market value, Barron's said. Sun's shares ended Friday's session at $2.88 on Nasdaq.
Other cash-rich bargain stocks include Yahoo Inc. (NasdaqNM:YHOO - News), Apple Computer Inc. (NasdaqNM:AAPL - News), JDS Uniphase Corp. (NasdaqNM:JDSU - News; Toronto:JDU.TO - News), Earthlink Inc. (NasdaqNM:ELNK - News), Comverse Technology Inc. (NasdaqNM:CMVT - News), and Tibco Software Inc. (NasdaqNM:TIBX - News). Research In Motion Ltd. (NasdaqNM:RIMM - News), Corvis Corp. (NasdaqNM:CORV - News) and Ciena Corp. (NasdaqNM:CIEN - News) could be possible takeover targets, Barron's said. |
