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Last Friday's decline presents a good opportunity to pick up some great companies at bargain prices. My top three picks for the coming week is Oracle (NYSE:ORCL), Cisco (NASDAQ:CSCO), and Nvidia (NASDAQ:NVDA).

Oracle (ORCL)

Oracle reached a high of 36.44 on 5/2/11 and has since pulled back significantly to low of 24.72 on 8/18/11. On Friday, it closed at 26. PEG is 0.77 compared with 1.46 for the industry. Q4 is usually a good quarter for Oracle and I expect this Q4 to be good as well. Of the major software companies SAP (NYSE:SAP), Microsoft (NASDAQ:MSFT), and Oracle, I like Oracle the best. It has proven that it can execute and integrate its many acquisitions over the years. Upgrading Oracle to Buy from Neutral with a target price of 34 in 12 months.

There are a couple of ways I can play this.

1) Go long.

2) Use a risk reversal option strategy. I would sell the DEC 25 Put for 1.93 and buy DEC 27 Call for 1.84, thus collecting a 9 cents premium on the trade. If the stock goes below 25 by December expiration, I will get the stock put to me at 25 (3.84 percent below Friday's close). Since I am willing to buy the stock at 26, buying it at 25 would be even better. If the stock goes above 27 by December expiration, I get to participate on the upside.

Cisco (CSCO)

I wrote about Cisco on 9/8/11. (See article)

I like Cisco at these levels. Cisco is another bargain stock. PEG is 0.91 compared with 1.15 for the industry. Better focus and execution moving forward will return Cisco to the top. The stock is poised for a breakout. Upgraded Cisco to Buy from Neutral. Target price at 18 in 12 months.

There are a couple of ways I can play this.

1) Go long.

2) Sell the DEC 15 Put for 0.93, buy the DEC 16 Call for 1.18, sell the DEC 18 Call for 0.44. I collect 0.19 in premium from putting on this trade. My upside is capped at $2.19 if the stock trades above 18 by December expiration. If the stock is below 15 by December expiration, I will get the stock put to me at 15.

Nvidia (NVDA)

I wrote about Nvidia on 9/7/11. (See article)

CEO Jen-Hsun Huang guided higher revenues and earnings for 2012. The stock has been crushed in the past 6 months. PEG is at 0.94 suggesting that it is a bit undervalued. Upgraded Nvidia to Buy from Neutral. Target price is 20 in 12 months.

There are a couple of ways I can play this.

1) Go long.

2) Sell the Dec 12 Put for 1.01, buy the Dec 14 Call for 1.79, sell the Dec 17 Call for 0.71. I will pay 7 cents to put this trade on. My upside is capped at $2.93 if the stock trades above 17 by December expiration. If the stock trades below 12 by December expiration, I will be put the stock at 12.

Source: Top 3 Stocks To Own After Friday's Pullback