COMPUTER SYSTEMS
Only concern at the moment is seasonal, as techs often slump during the historically slow summer months. If the sector does slowdown during summer months, should use weakness to add exposure to the group as fundamentals look very good at the moment.
Disk drive sector also proving that it was only mostly dead, In most cases, stocks remain well below all-time highs there is growing evidence that demand is picking up...
Valuations in the CEM group make those stocks attractive as well, especially SCI Sytems (SCI) and Solectron (SLR)...
Biggest risk to the sector is a general market risk - as long as market holds up these stocks will outperform.
Stocks:Adaptec (ADPT), Apple Computer (AAPL), Compaq Computer (CPQ), Dell Computer (DELL), EMC Corp. (EMC), Gateway (GTW), Hewlett-Packard (HWP), Hutchinson (HTCH), International Business Machines (IBM), Iomega (IOM), Jabil Circuits (JBL), Maxtor (MXTR), Micron Electronics (MUEI), Network Appliances (NTAP), Quantum Corp. (DSS/HDD), SCI Systems (SCI), Seagate Technologies (SEG), Silicon Graphics (SGI), Solectron (SLR), Storage Technology (STK), Sun Microsystems (SUNW), Western Digital (WDC).
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