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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (45099)	10/26/2008 3:20:54 PM
From: Johnny Canuck	Respond to of 71231

12 Promising Tech Stocks - Barron's by: SA Editor Rachael Granby October 26, 2008 \| about stocks: AAPL / AMZN / ATHR / CRNT / CTSH / ENER / GOOG / HPQ / NTDOY.PK / QCOM / SNPS / VAR Rachael Granby SA Editor Rachael Granby Add to Your WatchlistAbout this author: * Bio & more articles Become a Contributor Submit an Article back to yahoo finance add to my yahoo back to cake * Font Size: * Print * Email Tech shares are trading at major discounts, but Barron's Mark Veverka cautions investors to pick selectively. Below are several tech stocks that are showing signs of life in a beaten down sector. First, the bad news: tech stocks are down precipitously this year, with the Morgan Stanley tech index down 45% vs. a 40% decline for the S&P 500. Sales are expected to drop, as Goldman Sachs forecasts this year's consumer spending will be a measly 0.6% before dropping to 0.5% in 2009, while key corporate clients will likely reduce IT spending by 4.5%, the first decline in a decade. The cheap dollar, which had helped overseas sales, is now strengthening against the euro and other currencies. To put it simply, says Bill Whyman at International Strategy and Investment, "tech is fighting economic gravity." Still, the dismal forecasts have depressed stock prices, creating an opportunity to pick up a select few quality stocks at cheap prices. Thomas Laming, of the AFBA Science & Technology Fund, believes "tech will do well over the next few years" but emphasizes investors should be looking for companies with strong balance sheets, a good management team and exceptional technology to carry them through several rough quarters. Hewlett-Packard (HPQ) and Qualcomm (QCOM) fit these requirements, as does lesser-known Ceragon Networks (CRNT). Consumers are cutting back on spending, but consumer-based companies like Nintendo (NTDOY.PK) and Amazon (AMZN) should fare better than most. They offer cheaper prices, and Amazon's free shipping could help assuage buyers' fears about the costs of purchasing gifts and products. Walter Price, of Allianz Global Investor, sees Amazon's market value, currently at $20.8B, rising to $30B within five years. Dan Chung, of Fred Alger Management, believes Cognizant (CTSH), a technology outsourcing outfit, is the best in its field and has the best growth prospects. Trading around $17, the share price has been halved since last year but major financial institutions have remained clients. Chung thinks revenues and profits can grow 20% in 2009, bringing the stock price back to the $27-35 range. Chung also sees Apple (AAPL), trading around $96, as a potential bargain. "You don't get many [affordable] opportunities to buy a large-cap, highly liquid leader in its field with such a pristine balance sheet," he says, predicting a 22% rise in 2009 earnings to $6.25/share. The shares should trade between $150-$180 on strong cashflow from the iPhone. Allianz's Price thinks "the best way to monetize the mobile Internet is search," which is why he sees Google's (GOOG) stock going back to $600 from its recent $339. He believes Google can manage 20% annual growth for years to come. * Other tech stocks Veverka highlights: SNPS, ATHR, VAR, ENER

To: Johnny Canuck who wrote (45099)	10/26/2008 4:56:36 PM
From: Logain Ablar	Read Replies (1) \| Respond to of 71231

Harry: I agree but actually we are not at the bottom yet. Plenty of companies have farther to go. I expect GE in single digits before this is over. Lets see if the bp's set lower lows (ny @ 9 and comp @ 11 it used to be a good buy area when they dropped to 30). Look at Japan now setting a new low from 1989, 19 years later. All the buy and hold financial advisors are going to be losing a lot of business. The who can you trust and the answer is no one. Not even the banks or government.