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After a significant market correction, there are a number of tech stocks that are now trading at dirt-cheap valuations, even below book value. Tech stocks are likely to lead the stock market in any significant rebound and this makes the current buying opportunity very attractive. It's a good time to start picking up cheap shares and setting up your portfolio for possible gains into 2012. There has been plenty of gloom and doom in the headlines, but it is important to remember that demand for new technology is only going to increase in the future, and recessions don't last forever. Technology continues to play an increasingly important role in business productivity and in our personal lives. This dependence on technology makes the tech sector a solid investment for long-term investors. If you buy at or near the recent lows, you could end up just about doubling your money, if these stocks hit the price targets set by analysts this year. Most analysts set price targets based on where they believe the stock should be trading at in the next 12 months or so. The companies listed here are all trading below book value and have price targets that are around double the current stock price:

OmniVision Technologies (OVTI) shares are trading at $10.41. OmniVision sells the camerachip sensors used in mobile phones and other computer devices. The 50-day moving average is about $15.18 and the 200-day moving average is about $26.20. These shares have traded in a 52-week range between $10.40 and $37.04. Earnings estimates for OVTI are about $1.60 per share in 2011, and $1.33 for 2012. This stock dropped significantly in the past couple of months, when the company lowered guidance and after investors realized that Apple (AAPL) was sourcing similar products from competitors. The huge drop in the stock price seems to be an overreaction because the stock now trades below book value of $13.67. Furthermore, this company has a cash-rich balance sheet with over $500 million in cash and only about $50 million in debt. This stock is still acting weak so it only makes sense to buy in stages in case it drops further. I think the stock is making new 52-week lows now because investors are selling for tax-loss reasons. This could lead to a significant rebound in January when badly beaten-down stocks tend to rebound from excessive selling. Needham has set a $20 price target for OVTI shares.

Iridium Communications, Inc., (IRDM) shares are trading at $6.62. This company provides voice and data communications via satellite and is based in Maryland. The 50-day moving average is about $6.49 and the 200-day moving average is about $7.79. These shares have traded in a 52-week range between $5.50 and $10.04. Earnings estimates are about 52 cents for 2011 and 65 cents for 2012. This gives IRDM shares a PE ratio of only about 10 times earnings. Iridium is trading at a very reasonable valuation and is a leader in satellite based communications. The book value is $9.45 per share. Morgan Keegan has set a $12 price target for IRDM shares which is just about double the current share price.

Xerox, Inc., (XRX) shares are trading at $7.57. Xerox is a leading maker of document equipment, software and related products, and is based in Connecticut. The 50-day moving average is about $7.74 and the 200-day moving average is $9.21. These shares have traded in a 52-week range between $6.55 and $12.08. Earnings estimates for XRX are expected to be $1.08 for 2011, and $1.17 for 2012. The book value is $9.20 per share. XRX pays a dividend of 17 cents per share, which is equivalent to a 2.3% yield. Xerox is trading well below book value and at a very low PE ratio. Xerox owns an incredible number of very valuable patents, which could be a major incentive for a buyout. Any dips to about $7 or less, are particularly attractive for long-term investors and the dividend pays you to wait for a higher stock value. Standpoint Research has set a $14 price target for XRX shares.

Leap Wireless (LEAP) shares are trading at $6.97. Leap is a wireless communications provider. The 50-day moving average is $7.31 and the 200-day moving average is $12.06. These shares have traded in a 52-week range between $5.50 and $17.66. Earnings estimates for LEAP are expected to be negative for 2011 and 2012. These shares are trading for less than book value, which is stated at $8.81. A director recently bought more than $20 million worth of LEAP shares. Hudson Square Research put a buy rating and a $18 price target (the highest of all analyst targets) on LEAP shares.

Limelight Networks, Inc. (LLNW) is trading at $2.51. These shares have a 52-week range of $1.95 and $8.58. The 50-day moving average is $2.71 and the 200-day moving average is $4.58. Estimates for LLNW are for a loss of 12 cents per share in 2011, and a loss of 7 cents for 2012. Book value is stated at $2.92 per share. These shares are trading below book value, and this company has a cash rich balance sheet. The stock recently dipped to about $2.25, and with the markets in turmoil, it might make sense to wait for dips to that level again. Dougherty and Company has set a $5.50 price target for LLNW shares.

Clearwire Corporation (CLWR) shares are trading at $1.54. Clearwire is a provider of wireless broadband services. The shares have traded in a range between $1.24 to $7.37 in the past 52 weeks. The 50-day moving average is about $1.89 and the 200-day moving average is about $3.60. Earnings estimates for CLWR are for a loss of $2.20 per share in 2011, and a loss of $1.25 for 2012. Clearwire is trading for less than half of book value, which is $3.50. This stock is probably a good short-term trade to buy now and sell on a rebound in January. Kaufman Bros has set a $6 price target for CLWR shares.

MetroPCS Communications (PCS) shares are trading at $7.51. MetroPCS is a leading provider of wireless broadband services. The shares have traded in a range between $7.51 to $18.79 in the past 52 weeks. The 50-day moving average is about $8.76 and the 200-day moving average is $13.51. Earnings estimates for PCS are for 75 cents per share in 2011, and 89 cents for 2012. This stock was trading for about $16 in July and then plunged as the markets corrected in August. PCS shares look cheap now and are trading below book value, which is $7.81 per share. Kaufman Bros has set a $16 price target for PCS shares.

The data is sourced from Yahoo Finance and Stockcharts.com. The information and data is believed to be accurate, but no guarantees or representations are made.

Disclaimer: Rougemont is not a registered investment advisor and does not provide specific investment advice. The information contained herein is for informational purposes.

Source: 7 Dirt-Cheap Tech Stocks That Analysts Expect To Double In 2012