Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

15 Technology Stock Ideas For a January Effect Trade

By

15 companies worth a look when planning for January.

PrintPRINT
Following up on my piece regarding this year's January Effect, I've provided a list of some possible stock plays when this thing hits going into late December and early January.

This list is in no way all inclusive and in fact there are possibly hundreds of stocks currently experiencing very heavy year-end selling, with little to no deterioration in fundamentals. I did try to limit the list to companies with high cash per share and/or book value. If possible I tried to include the niche leader in its respective space.


SiRF Technology Holdings (SIRF): GPS chips are going to be infused into more cell phones almost every quarter over the coming two years. SIRF and Broadcom (BRCM) will own this growth.

RF Micro Devices (RFMD): This is a very cheap high quality cellular chip maker. Recent results were solid even with a weak Motorola (MOT) in the picture. Any improvement with MOT and this stock could easily see much higher prices.

Spansion (SPSN): Yes, the Dram end markets are terrible. Yes, the stock is a money losing EPS machine. Yes, I think it can work quite a bit higher for a seasonal trade. Long term issues may have bottomed but that's a very tough call in this industry.


Stay informed, stay successful. Get your free two-week trial of the Buzz & Banter and get real-time information, observations and ideas from our Minyanville professors.


Opnext (OPXT): One of my favorite stocks in the optical component sector, it has great revenue growth and strong product cycle. Frankly, it's a mystery how this stock is this cheap.

Finisar (FNSR): This is a very touchy stock which just bounced hard then traded to new lows on an improving quarter off an already decimated base. OPXT could prove to be a tough competitor but FNSR has managed to survive and even thrive at times since bottoming in 2002. Odds are it will have the products to match strong growth in industry end markets for optical components.

QLogic (QLGC): The stock has been very undervalued most of year, holding of late but has pulled back after stronger recent results

Infinera (INFN): Most everyone who bought the secondary has probably tossed away their shares for losses. This could prove to be a costly sell if the stock get back to highs or breaks through to new highs, which I fully expect.

DSP Group (DSPG): This stock is a great example of the stealth bear market underlying the Naz, moving all the way back to 2002 levels. The stock moved higher on merger announcement months ago and has steadily fallen lower since. It has a strong balance sheet and is selling below book value.

Mentor Graphics (MENT): This company is similar to many above. Its business is not falling off a cliff and it reaffirmed its '08 outlook. The stock is relentlessly trending lower.

MIPS Technologies (MIPS): This IP chip company sells building blocks to many larger chip companies. On the last couple of conference calls management has talked about the strength of its business being as solid as any time in its history.

ValueClick (VCLK): Many merger rumors have come and gone with it, leaving many a frustrated long to sell the stock for tax losses at year end.

PMC-Sierra (PMCS): This communication and storage chip maker has reported a string of improving quarters, which has done little for the stock price.

Avocent (AVCT): This IT infrastructure provider has gotten crushed after a moderately downbeat forecast on its last call. The company increased its buyback in November to no avail thus far. It's very cheap at current levels.

Jabil Circuit (JBL): This is an EMS company that I've highlighted before on the Buzz, with multi-year lows on many valuation metrics. Recent analyst commentary has highlighted its valuation case.

AVX (AVX): This company is a diode and capacitor maker. This old school tech name has been through many difficult markets and cycles and has a very solid management team and balance sheet. The stock is priced for recession: If we don't have one it could be a steal from year end structural selling pressures.


Lastly, a few more names fitting the above profile would include InterDigital (IDCC), Brooks Automation (BRKS), Kulicke & Soffa Industries (KLIC), Acme Packet (APKT), Cray (CRAY) and Brocade (BRCD).

If there are other stocks you want to drop me a question on please do so and I will do my best to answer as many emails as possible.


GET THESE INSIGHTS AND MORE IN REAL-TIME. CALL 212-991-9357 FOR A 14-DAY FREE TRIAL TO THE BUZZ & BANTER OR CLICK BELOW.
Position in OPXT, FNSR, INFN, MIPS, PMCS, BRCM and APKT.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE