Posts Tagged ‘tech stocks’

Look for the Technology Sector to finish strong in 2010

Friday, February 12th, 2010

Hi-Tech stocks have a real good chance of being an extremely conducive place for investors to invest their money in 2010. Keep in mind that technology companies typically do not carry much debt on their balance sheets, which allows them to purchase other companies when the opportunities arise. In addition, technology companies do a lot of business in foreign economies and couple that with the falling dollar and prices of U.S. products will be very attractive to overseas customers.

There are certainly discussions out there about quality tech opportunities as presented here. In addition, to some of those names I have other areas you might want to consider as you look to garner profits in the technology sector over the course of 2010.

Some of the stocks that are poised to have a very rosy 2010 include Apple Computer (AAPL), Baidu Incorporated (BIDU) and Amazon.com (AMZN). All these stocks have tremendous fundamentals and are in a great position to takeoff to the upside. Another way to participate is to buy the QQQQ exchange traded fund, which closely mirrors the NASDAQ. For more aggressive investors you could purchase the QLD exchange traded fund which move twice as fast the QQQs.

Trading Tips to Help Cash in on Hi-tech Profits

One way to lower costs when thinking about trading in the hi-tech area is to use options. You can use straight calls or spread them to even lower the costs further. There are also the possibilities of implementing covered calls or selling puts on the underlying to lower the overall cost basis. All of these option trading tips can go a long way in improving your total return on investment.

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Cramer’s position on tech a smart stance

Sunday, December 13th, 2009

On last Wednesday’s episode of Mad Money, Jim Cramer spent a little time talking tech stocks. Due to a slight pullback, some analysts were concerned that another tech bubble was going burst. Cramer, however, saw it differently and recommended that his viewers take advantage by buying in. In making his picks, I think Cramer definitely got it right.

It’s true that Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), and Google (NASDAQ:GOOG) took a little bit of a dip lately. But, these stocks are all trading around their year-highs and they have all increased exponentially over the past year. They are also all trading at very high levels compared to more classically-modeled companies. So, a slight decline on these will naturally look bad, since they have so far to fall. But, these corrections are no different in percentage than other sectors have been experiencing. All three of these companies have shown a willingness to adapt to the changing marketplace, and because of that, I think they will continue to be profitable for some time.

Almost ten years after the dot-com bubble, some traders are still wary of tech stocks. But, I think the market’s a little wiser as a result of the internet crash. Instead of every tech company being viewed as an instant money machine, a few well-managed corporations have risen to the top, just as in other sectors. So the risk of another catastrophic implosion is much smaller. Cramer wisely advises investors to use tech stock dips like this to venture into the waters. I think this is an excellent idea. Since tech is somewhat volatile, a savvy buyer who jumps in while the water’s warm can become profitable rather quickly.

Let’s not kid ourselves. Technology is not going anywhere anytime soon and our dependence on it is, in fact, growing by the year. If you’re a trader looking for a relatively stable investment strategy, don’t fear the tech sector. Now that the initial internet hysteria has calmed down, tech stocks are maturing into a safe, long-term investing vehicle.

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