Stock shop 2008 - facts Technology Sector

Despite new turmoil in the It sector for 2008, I avow that this is now where you want to be. Reasoning here follows that the financial sector is struggling to keep its bad news buried, the housing market is shambles and even retailers are struggling to preserve growth. A move toward tech seems fully logical due to typically strong international exposure, obvious equilibrium sheets and the fact that It stocks hold a historically low correlation to the broader markets. Lets pick some technology bulls.

Consumer Electronics - The Net Fool picks Apple (Nyse: Aapl) Hey Mr. Market, why so down on Apple? The iPod firm is fully matured. The iPhone is losing account to similar devices. MacWorld was missing its usual superstar prospect. I tell you what, take this news and know that Apple has historically done its best when sentiment is low. Steve Jobs & Co. Is my favorite It pick for 2008. The downside has opened up value in the stock, and I feel they have bottomed!

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Looking supplementary into the about issues. The iPhone was selling less because of Apple's push into the new iPod Touch, the analysts at Needham noted that "Apple would have sold close to four million iPhones in its absence." Add this to the fact that an estimated 25%-30% of iPhones were "unlocked" from At&T, a whole that truly benefits Aapl straight through the carrier's headache. While iPod sales were slowed, I feel that the mp3 gadget is merely in a transitioning phase, and bright opportunities are now raised in mobile technology.

I feel that Aapl may be a stepping back resistor. Mac firm is healthier than ever, and single-handily offset losses in iPods. Investors are punishing high-end firms like Apple for any disappointments. The stock is 35% off its highs, trading at a prime 24-times-earnings compared to its peer's 32x and has a Peg of 0.7x. They've got the free cash flow we love (.78/share est. 2008) and its firm segments have never looked healthier. Citizen are hating on this firm for no reason. As Warren Buffet puts it: "Be fearful when others are greedy, and greedy only when others are fearful."

Comm. Equipment - The Net Fool picks Corning (Nyse: Glw) Corning is the firm you want for Lcd glass panels. This market is victorious with bigger and badder television sets arrival out on the daily. Fourth quarter results showed that administration feels the same due to prolonged speculation in facilities and solid relationships with market leaders. 2008 outlook was Very obvious and new earnings streams should be found in an estimated 60%+ growth in Lcd capital spending. Glw anticipates releasing a new flexible fiber glass material and should see appreciation from the arrival adoption of mandated diesel filtration. No major catalyst is driving growth, which is certainly odd, but an bright valuation recovers most of the risk.

Outside of Lcd glass, Corning is still running the table. A new "Gorilla Glass" stock that enabled touch-screen entry has come to be readily sold to handset manufacturers. Corning seems to understand the shift to mobile technology, and is truly on the ball. With this in mind, accepted and Poors added: "sales acceleration to 17% growth in 2008, up from 13% in 2007, aided by currency benefits and more importantly due to higher ask for liquid crystal display (Lcd) glass substrates from Tv and computer manufacturers." all things is arrival together for Corning, even Verizon is on board, a new buyer of Glw's "ClearCurve" cable solutions. ClearCurve is the world's most bendable fiber, 100x more bendable than regular fiber... Which is apparently very important. This new technology could unlock huge possible with the preserve of an business leader in FiOs.

Corning should be a core technology keeping for every investor. They remain uncostly with a Peg at 0.83x and a transmit Pe at 13x versus an estimated trading value closer to 20x. There are some risks presented by overcapacity in the Lcd glass business and potentially slowed It spending. However, I feel as though retailers will continue to purchase the glass for bigger screens, and the fiber for faster internet. If they are overstocking and cannot sell, that is their problem... Not Cornings. These guys beat earnings by a penny, and their outlook only improved. They are bulls across the board, and deserve to trade at a prime in my opinion.

Solar Semiconductor - The Net Fool picks First Solar (Nyse: Fslr) After doubting the extreme-growth behind solar technology in January 2008, it seems high time we apologized to powerhouse gainers like First Solar. ThinkEquity Partners gave this great stock a one-word classification, "debottlenecking." After smashing earnings estimates of 53 cents a share with an astonishing 77 cent gain, they appreciated 30% on the day after expanding 2008 guidance. Don't let this buy-athon scare you away. We plan the solar business run-up was finished, and were clearly proven wrong. The year-over-year earnings growth of 280% and power in Eps suggests stronger time to come earnings power.

Operating efficiency is one of the traditional benefits I see from execution in 2008. Costs per watt (.12) averages were down 6% on the year, and a negative currency impact from the Euro was approximately entirely overshadowed by thrifty operations in First Solar's Malaysia plant. Spots for revising have been identified, and most analysts feel they can bring home the gold. Most notably, the first and second quarter 2008 should prove to show prolonged growth on track with 2007 appreciation. Solar clubs are all trading at bright premiums when inspecting growth. With oil on the move upward, it seems that momentum for green power will remain strong. Investors should return to the solar arena with strong earnings and ask in mind.

The Malaysian plant's revamp may have a negative impact on First Solar's first quarter earnings in 2008. On the other side of the coin, we expect an growth in production and see operating margins supporting at 30%+ levels. I wouldn't be surprised at all to see more good news in guidance. We expect their Pe and Peg ratios to come more in line with the industry, as the current prime they appear to be trading at is a supervene of explosive growth over the past year. execution was flawless in 2007, and with nothing but green lights thus far... First Solar makes for a great long-term growth play.

Infrastructure Tech. - The Net Fool picks Akamai (Nyse: Akam) Akamai is alive and well in 2008. After inspecting them earlier in 2007, they have prolonged to display power in their industry. In a recession-trending market, there is a bit of security surrounding an internet-based firm. There is Very strong entertainment and media ask across the internet, and Akamai is just the firm to deliver the goods. Akam posted a big jump in profits while the fourth quarter earnings call, which handily beat examiner estimates. After expanding advice into 2008 with prolonged streaming media ask on the net, it is becoming hard to spin this firm negatively.

Akamai Technologies has had an astonishing run up over the years. Frustrating the bears once again on their last earnings conference, Akam got a boost off of their 52-week lows. They've now extended their streak of sequential earnings and behalf growth to 20 consecutive quarters! What's more, their equilibrium sheet is as salutary as ever; they have once again increased free cash flow to 4m from 6m. With a important role in a victorious content-delivery market, analysts such as Canaccord Adams advise the possible earnings and earnings growth "in excess of 30% for the next some years."

The valuation of Akamai is contested often by analysts over whether they are cheap or in-line. I believe they are to the cheap side finding as how the are off about 45% from their 52-week high and are trading with a Peg of 0.7x. I might be tempted to test the waters if they fall under . They are trading at a exiguous prime in price-to-earnings terms, but I feel this is more than merited as they seem to be a obvious stepping back keeping in data technology. With price sensitivity imaginable to fade along with lowering bandwidth costs, it would appear to be Akamai's market to steer over the next few years.

That's it for data technology. There are truly some great stocks to be found in the sector, despite the plan that tech is always more vaporing and hazardous than financials, conglomerates and the like. While February is a historically poor season for It, I wouldn't mind getting my march shopping done a bit early with a lot of negative sentiment unfairly dragging down perfectly salutary companies.

-The Net Fool

Stock shop 2008 - facts Technology Sector