Lombardi: Stock Market Commentary & Forecasts, Financial & Economic Analysis Since 1986

When You Need to Buy Technology Stocks

Tuesday, December 4th, 2012
By for Profit Confidential

Need to Buy Technology StocksThe tech-laden NASDAQ fared the best in November with a 1.1% advance, which was well ahead of the 0.3% gain in the S&P 500 and 0.5% decline in the DOW. Yet technology and growth stocks have not fared in the equities market since the end of the first quarter, with the NASDAQ down 2.6%, versus a 0.6% advance by the S&P 500 and 1.4% decline by the DOW.

In spite of the sluggishness of technology stocks, I suggest you continue to follow my investment strategy; buy good technology stocks on market weakness in the equities market, as long as you are willing to hold on to these stocks for the longer-term and ignore the near-term volatility.

A classic example of a technology stock that fell into the doldrums and provided a good buying opportunity was Facebook, Inc. (NASDAQ/FB), which traded at a low of $17.55 on September 4 prior to rallying $11.00 a share, or a whopping 63.0%, to over $28.00 on Monday. Facebook is exciting investors with its new plan of generating revenues from its one billion subscribers in such areas as mobile advertising. The reality is that Facebook has an impressive one billion pairs of eyeballs that can be extremely valuable if a sound strategy is executed. Again I would look to accumulate on price weakness down to the low-$20.00 level. The company’s biggest threat is Google Inc. (NASDAQ/GOOG) in the equities market.

FB Facebook, Inc. Nasdaq stock market chart

Chart courtesy of www.StockCharts.com

Another major technology stock that is going through a rough patch is Apple Inc. (NASDAQ/AAPL), which at below $600.00 is down over 16.0% from its record high of $705.00 on September 21. We are seeing some panicking in the market on whether to hold Apple, but my view is that unless the company loses its grip on the tablet and smartphone markets, it will continue to be the “best of breed.” I’m excited about Apple’s expansion into China’s massive mobile market of over 800 million users. If you’re interested, look to buy on weakness or via call options, which you can read about in “Here’s a Low-risk Strategy Given the Big Risk.” However, note that this is not a specific recommendation to buy this stock at this time; just a general idea of your options.

  • The Two Most Important Pictures Investors Will See This Year

    Within the next 90 days, a new economic catastrophe will be headed our way.

    It will blindside most Americans. And this time, the government and the Federal Reserve will not be able to help.

    It will cause a surge in personal bankruptcies and massive layoffs. It will make the recession of 2008 pale in comparison.

    It will crash retirement plans: I'm talking stocks, bonds, maybe even your own bank account.

    To get a firsthand look at what we're so worried about now, a catastrophe that has already been set in motion, I urge you to...

    See the two most important pictures investors will see this year FREE when you click here.

AAPL Apple, Inc Nasdaq stock market chart

Chart courtesy of www.StockCharts.com

And as we move forward, my belief has not changed. I continue to feel that technology will remain the top growth area to make money in the equities market.

I believe that the area that will offer the opportunity for the best stocks in the equities market is mobility applications for tablets and smartphones, as users shift away from the more cumbersome personal computers and laptops.

Success in the equities market is all about innovation.

The major chip companies, such as Intel Corporation (NASDAQ/INTC), will also be an excellent place to stash some capital in the equities market.

Also take a look at some of the smaller technology stocks that develop solutions for mobile applications, such as Synaptics Incorporated (NASDAQ/SYNA) and 8×8, Inc. (NASDAQ/EGHT), along with Glu Mobile Inc. (NASDAQ/GLUU) in the high-risk speculative area.

I’m mixed on Microsoft Corporation (NASDAQ/MSFT). Its “Windows Surface” tablet is priced way too high to compete against the broad choices available out there.

For the thrill-seeker, take a look at Nokia Corporation (NYSE/NOK), which has a poor product line, but is patent-rich. The stock has been surging in the equities market. It is worth a closer look for the contrarian investor, as the market tries to value its patents.

Please note that none of the stocks I have mentioned represent a buy endorsement; they are only examples of stocks that you may want to look at in technology.

I continue to firmly feel that technology will be the place for the best equities market opportunity for growth investors going forward.

VN:F [1.9.22_1171]
Rating: 0.0/10 (0 votes cast)
VN:F [1.9.22_1171]
Rating: -1 (from 1 vote)

This is an entirely free service. No credit card required.

We hate spam as much as you do.
Check out our privacy policy.

George Leong - Financial Planner, ConsultantGeorge Leong, B. Comm. is a Senior Editor at Lombardi Financial, and has been involved in analyzing the stock markets for two decades where he employs both fundamental and technical analysis. His overall market timing and trading knowledge is extensive in the areas of small-cap research and option trading. George is the editor of several of Lombardi’s popular financial newsletters, including The China Letter, Special Situations, and Obscene Profits, among others. He has written technical and fundamental columns for numerous stock market news web sites, and he is the author of Quick Wealth Options Strategy and Mastering 7 Proven Options Strategies. Prior to starting with Lombardi Financial, George was employed as a financial analyst with Globe Information Services. Add George Leong to your Google+ circles

The Great Crash of 2014

A stock market crash bigger than what happened in 2008 and early 2009 is headed our way.

In fact, we are predicting this crash will be even more devastating than the 1929 crash…

…the ramifications of which will hit the economy and Americans deeper than anything we’ve ever seen.

Our 27-year-old research firm feels so strongly about this, we’ve just produced a video to warn investors called, “The Great Crash of 2014.”

In case you are not familiar with our research work on the stock market:

In late 2001, in the aftermath of 9/11, we told our clients to buy small-cap stocks. They rose about 100% after we made that call.

We were one of the first major advisors to turn bullish on gold.

Throughout 2002, we urged our readers to buy gold stocks; many of which doubled and even tripled in price.

In November of 2007, we started begging our customers to get out of the stock market. Shortly afterwards, it was widely recognized that October 2007 was the top for stocks.

We correctly predicted the crash in the stock market of 2008 and early 2009.

And in March of 2009, we started telling our readers to jump into small caps. The Russell 2000 gained about 175% from when we made that call in 2009 to today.

Many investors will find our next prediction hard to believe until they see all the proof we have to back it up.

Even if you don’t own stocks, what’s about to happen will affect you!

I urge you to be among the first to get our next major prediction.
See it here now in this just-released alarming video.