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The fear of Greece exiting the Euro hurt the technology sector in recent weeks. The Nasdaq gave back half of its gains in 2012, and the S&P 500 is up only 5% this year. Investors looking for turnaround plays will find opportunities in the technology sector.

1) OmniVision Technologies (OVTI)

OmniVision Technologies shares peaked above $20 in April, and last traded at $14.19, a drop of around 30%. News that Einhorn, a hedge fund manager, sold his entire position in the company hurt shares. Einhorn had 3.77% of his equity position in OmniVision.

The company is scheduled to report earnings on Thursday, May 31st after market close. Prior to its last earnings, the company took steps to improve shareholder value. OmniVision bought back 8.1 million shares, and reported stable sales growth in the 1.3 and 2 megapixel sensors.

Investors should wait until after the company reports on May 31 before considering OmniVision as a turnaround play. Investors should look for a higher proportion of sales from HD sensors and the 5- and 8- megapixel sensors. Investors should also look for yields improving for the 8-megapixel OmniBSI-2 product. In previous quarters, OmniBSI-2 costs hurt earnings. In February, the company guided current quarter revenues in the range of $195 - $215 million, and non-GAAP earnings of $0.13 per diluted share.

2) Alcatel-Lucent (ALU)

The trading action of Alcatel-Lucent, whose shares recently bottomed below $1.50 to close at $1.67, suggestions shares will hold its turnaround. The company recently announced development for a core Internet router that is up to five times faster than Cisco's router. Dubbed "7950 XRS," the company claims its router can deliver 16 terabits of data per second.

The 7950 XRX is based on a multi-chasis architecture that relies on a direct connection between Chasis for interconnection. This allows Alcatel-Lucent to stack 15 chasis, supporting 240 Tbps of traffic.

Long-term upside for Alcatel-Lucent shares remains limited. Shares are held back by the company's poor record in acquisitions. Despite the poor history of acquisition for the company, there is one glimmer of hope: Alcatel-Lucent's Timetra acquisition is the IP division responsible for the 7950 XRS.

3) Research in Motion (RIMM)

Research in Motion shares closed recently at $11 and have not yet bottomed. It is still too early to consider Research in Motion as a turnaround play at this time, but it is getting close. The company is expected to announce a lay-off of between 2,000 and 6,000 workers before the quarter ends. The company also lost two executives: Patrick Spence, Head of Global sales, and Karima Bawa, the Chief Legal Officer.

RIM is approaching a bottom that might find support below $9. The company holds $2.1 billion in cash, $1.5 billion in real estate and buildings and $778 million in patents. Excluding the value of its other patents and an increase in cash when this quarter ends, RIM is worth $8.35. RIM is trading 24% above this value, supported primarily by takeover rumors and interest for the Blackberry 10 launch. RIM shares might continue to drop, as investors worry about launch delays.

4) Nokia (NOK)

Nokia, whose shares are just 5% above a 52-week low, continues to trade as if it will not recover. The company pinned its hopes for a turnaround on Microsoft (MSFT) Windows Phone last year. The latest positive developments for Nokia include: plans for a version of Angry Birds that will be supported on the Lumia 610 model, a mobile healthcare development challenge with a $2.25 million prize, and integration of the "Where" platform on Bing. "Where" brings live traffic and geocoding algorithms on Microsoft's mapping service. The service is available in 24 nations, and offers consumers another reason to consider the Nokia platform.

5) Hewlett-Packard (HPQ)

Hewlett-Packard rallied 8.56% in recent days from a 52-week low to close at $22.33. After reporting earnings. In its Q2, the company generated earnings and revenue that beat the high-end of its outlook. HP earned $0.98 per share on revenues of $30.7 billion. Like Nokia, HP is depending on Windows 8 on ultra books to boost sales later this year.

While the turnaround at HP is a long-term one that will take several years, there are red flags. The company reported weak earnings from Autonomy, and announced that its founder was leaving. HP is growing by cutting costs but will need to deliver on generating growth in the areas of Cloud, security, and Information Management. Still, the low-valuation of HP shares limit further downside, while investors get paid 2.4% ($0.53 per share) in yield to wait.

Source: 5 Technology Stocks Ready For A Turnaround