Best of the Week
Most Popular
1.US Paving the Way for Massive First Strike on North Korea Nuclear and Missile Infrastructure - Nadeem_Walayat
2.Trump Reset: US War With China, North Korea Nuclear Flashpoint - Video - Nadeem_Walayat
3.Silver Junior Mining Stocks 2017 Q2 Fundamentals - Zeal_LLC
4.Soaring Inflation Plunges UK Economy Into Stagflation, Triggers Government Pay Cap Panic! - Nadeem_Walayat
5.The Bitcoin Blueprint To Your Financial Freedom - Sean Keyes
6.North Korea 'Begging for War', 'Enough is Enough', is a US Nuclear Strike Imminent? - Nadeem_Walayat
7.Bitcoin Hits All-Time High and Smashes Through $5,000 As Gold Shows Continued Strength - Jeff_Berwick
8.2017 is NOT "Just Another Year" for the Stock Market: Here's Why - EWI
9.Gold : The Anatomy of the Bottoming Process - Rambus_Chartology
10.Bitcoin Falls 20% as Mobius and Chinese Regulators Warn - GoldCore
Last 7 days
Stocks, Gold, Dollar, Bitcoin Markets Analysis - 23rd Sep 17
How Will We Be Affected by a Series of Rate Hikes? - 23rd Sep 17
Fed Quantitative Tightening Impact on Stocks and Gold - 22nd Sep 17
Bitcoin & Blockchain: All Hype or Part of a Financial Revolution? - 22nd Sep 17
Pensions and Debt Time Bomb In UK: £1 Trillion Crisis Looms - 22nd Sep 17
Will North Korea Boost Gold Prices? Part I - 22nd Sep 17
USDJPY Leads the way for a Resurgent Greenback - 22nd Sep 17
Day Trading Guide for Dummies - 22nd Sep 17
Short-Term Uncertainty, As Stocks Fluctuate Along Record Highs - 21st Sep 17
4 Reasons Gold is Starting to Look Attractive as Cryptocurrencies Falter - 21st Sep 17
Should Liners Invest in Shipping Software Solutions and Benefits of Using Packaged Shipping Software - 21st Sep 17
The 5 Biggest Bubbles In Markets Today - 20th Sep 17
Infographic: The Everything Bubble Is Ready to Pop - 20th Sep 17
Americans Don’t Grasp The Magnitude Of The Looming Pension Tsunami That May Hit Us Within 10 Years - 20th Sep 17
Stock Market Waiting Game... - 20th Sep 17
Precious Metals Sector is on Major Buy Signal - 20th Sep 17
US Equities Destined For Negative Returns In The Next 7 Years - 3 Assets To Invest In Instead - 20th Sep 17
Looking For the Next Big Stock? Look at Design - 20th Sep 17
Self Employed? Understanding Business Insurance - 19th Sep 17
Stock Market Bubble Fortunes - 19th Sep 17
USD/CHF – Verification of Breakout or Further Declines? - 19th Sep 17
Blockchain Tech: Don't Say You Didn't Know - 19th Sep 17
The Fed’s 2% Inflation Target Is Pointless - 19th Sep 17
How To Resolve the Korean Conundrum  - 19th Sep 17
A World Doomed to a Never Ending War - 19th Sep 17
What is Backtesting? And Why You Need Backtesting System? - 19th Sep 17
These Two Articles Debunk The Biggest Financial Nonsense I See In The Media - 18th Sep 17
Bitcoin Price Crash 40% In 3 Days Underlining Gold’s Safe Haven Credentials - 18th Sep 17
The Sum of Risks – Global, Strategic, Political, and Financial - 18th Sep 17
The Netflix Of Canada’s Cannabis Boom - 18th Sep 17
Stock Market Sentiment Speaks: Either You Learn From The Events Of The Past Week, Or You Are Hopeless - 18th Sep 17
SPX 2500 … At Last! - 18th Sep 17
Inflation Lies, Lies and OMG More Lies - 18th Sep 17
How to Choose right Forex Trader? - 18th Sep 17
Who Has Shaped the World the Most? The Dozen Greatest Achievers - 17th Sep 17
Riding the ‘Slide’: Is This What the Next Stocks Bear Market Looks Like? - 17th Sep 17
Gold Up, Markets Fatigued As War Talk Boils Over - 17th Sep 17
Predicting the Future of the U.S. and the World - 16th Sep 17
Deceit in the Financial Food Chain - 16th Sep 17
Gold GLD ETF Investment Resuming - 16th Sep 17
Extreme Weather & Energy Markets: What's Next? - Video - 15th Sep 17
Trump’s Path to IP Wars - 15th Sep 17
GBP USD Approaches Fibonacci Target - 15th Sep 17
Higher US Interest Rates May Force Higher Inflation Rates - 15th Sep 17
Stock Market Investors: Taking the Road "Less Traveled" Has Its Perks - 15th Sep 17
The 3 Best P2P Lending Platforms For Investors In 2017—Detailed Analysis - 15th Sep 17
The US Debt Bubble Will Soon Warrant Serious Measures - 15th Sep 17
Why it is Often Difficult to Sell a House Fast - 15th Sep 17

Market Oracle FREE Newsletter

3 Videos + 8 Charts = Opportunities You Need to See - Free

Tech Stocks Forecast 2013 - Ride the Mobile Wave, Bet on Cloud Computing

Companies / Tech Stocks Dec 04, 2012 - 07:10 AM GMT

By: Money_Morning

Companies

Michael A. Robinson writes: The best way to score tech stock gains in 2013 is simple: tap into the areas where there is "constant buzz."

But before we get to the three areas that are the most buzz-worthy, let's start by clearing up one big myth. There really is no such thing as one tech industry.


High-tech now sweeps throughout the entire economy. We're talking everything from robot welders, to laser surgery, to hum-drum database management.

So, even if the economy remains flat or declines, there will still be buzz-driven tech stock winners, companies involved in fields that are so vital that customers simply must have their products.

That's why I tell investors to look for huge global trends that will continue no matter what happens with the fiscal cliff or the Eurozone debt crisis.

Ditto for the expected battles over Obamacare this year. Two years after its passage, we still don't know exactly how many states will set up the exchanges needed to put the law into practice.

Either way, it doesn't really matter...

There's so much going on in high tech that some specific tech stocks are bound to yield big gains in 2013.

I've narrowed it all down to three vital areas that should power through next year-- no matter what the economy or the politicians throw at them.

It starts with the biggest of them all, the mobile wave...

2013 Tech Stock Forecast: Ride the Mobile Wave
Mobile tech dominated developments in the market this year and that trend will gain steam throughout 2013.

Indeed, the mobile wave is moving more quickly than the advent of the personal computer in the 1980s and the rollout of the Web in the 1990s combined.

That's because mobile devices like smart phones and tablets provide a huge amount of computing power for very little money.

As I like to remind people, your smart phone is a faster and better computing system than NASA had for its Apollo moon shots -- and it's more than 1,000 times cheaper.

For less than a flight from LA to New York, you can have the whole world in the palm of your hands.

What makes this wave so strong is the sweet spot -- low-cost devices, high-speed wireless Internet access and a huge build-out around the world of cell towers that offer fast data rates.

Add it all up and you have a huge global trend that will flatten anything in its path.

Just look at what happened to Hewlett-Packard (NYSE:HPQ) this year. Light on mobile tech compared to its peers, the stock is off 55% so far in 2012.

Though it faces growing competition, Apple Inc. (Nasdaq:AAPL) will dominate the enterprise class for tablet computers with its 10-inch iPad. It sets the standard for professional use.

And don't forget the importance of the iPhone 5. Indeed, I penned a column for Money Morning back on Aug. 22 that mentioned six ways to play this hot mobile device, including some small caps that you can read about by clicking here.

Also, keep an eye on Visa Inc. (NYSE:V). Known mostly as a credit-card firm, it is moving heavily into mobile payments. It trades at about $148 with a forward P/E of 17.5 and has very high profit margins.

Ebay Inc. (Nasdaq:EBAY) is close on its heels. Its Paypal unit is aggressively courting mobile payments.

Betting on Big Data And Cloud Computing
Most analysts divide big data and cloud computing into two separate categories. But I see these as two sides of the same computer coin.

Here's the thing. The minute a firm decides to move data to the cloud it realizes it is sitting on a gold mine. So it invests in big data to cut costs and find new sources of revenue.

And the reverse holds true as well. Firms that want to mine their vast treasures of info on clients, suppliers, and industry players realize they need to move all that information to the cloud. It's a whole lot cheaper than upgrading a computer network or building a new one from scratch.

Also, both fields derive much of their growth from the Internet. The advent of the Web has unleashed a tidal wave of new data, voice, video, Web-based applications and the like.

It's just too much information for humans to handle.

So, big data firms provide algorithms and other ways to convert boring details into something much more exciting -- cash. Stocks to watch in these two areas include:

•EMC Corp. (NYSE:EMC) is a data storage firm that also offers cloud-based infrastructure services. Trading at about $25, the big-cap firm has low price ratios and solid profit margins.
•Akamai Technologies Inc. (Nasdaq:AKAM) is a U.K.-based firm that is a straight-up play on cloud computing. Trading at about $36 a share, it has $465 million in cash on hand and no debt.
•International Business Machines Corp. (NYSE:IBM) pretty much defines big data, but also is moving heavily into the cloud. With a market cap of $216.5 billion it trades at less than 14 times earnings.

Cyber Security Could Become Federal Law
This field faces a big political question: Will Washington finally pass a cyber security law mandating new measures for the private sector?

Despite what looks like broad bi-partisan appeal, Congress debated but did not pass a cyber security bill earlier this year. This is ironic considering how much Washington has cranked up new business mandates in the last decade.

CEOs I talk with say they expect a solid run at passing some type of cyber security bill in the second half of this year.

Clearly at this point, no one knows what might pass in its final form. But even if no law comes out this year, expect this segment to do well for one big reason -- constant buzz.

Cyber breaches are a daily fact of life in a Web-oriented world. Several make big news each year, prompting more firms to spend money protecting their computer assets. Here are three firms that specialize in this area:

•Palo Alto Networks (NYSE:PANW) trades at about $55.00 but is very expensive on a ratio basis, trading at a forward P/E of 133.
•Check Point Software Technologies Ltd. (Nasdaq:CHKP) is very well known in this space. It trades at about $45.00 with a forward P/E of 13 and profit margins that are off the charts.
•Fortinet Inc. (Nasdaq: FTNT ) trades at nearly $20 a share with a forward P/E of 32.50 and solid profit margins. It throws off a lot of cash and has no debt on its books.

Let me close by noting that even if the economy softens next year, the three sectors I've outlined should do well.

Each represents an area that is benefitting from radical change that can't be stopped.

That's why I think the market will love these tech stocks in 2013.

Source :http://moneymorning.com/2012/12/04/2013-tech-stock-for...

Money Morning/The Money Map Report

©2012 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2017 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife