Browsing the Sale Rack for Tech Bargains

One of the great things about blogging about the market is that while I can't possibly buy every stock that looks attractive, I can post some ideas online and readers can make money if any of them spark their interest.

With the technology sector among the worst performers so far in 2008, I thought I would present six stocks that look awfully cheap for long term investors who have no problem waiting out current economic conditions. All of these names have extraordinarily strong balance sheets, so there is even more value than the P/E ratios indicate. Feel free to make the case for any favorites you may have on this list.

Full Disclosure: Long DELL and MSFT but like the entire list to some degree.

Comments

[beegdawg007:]

Right now the entire tech sector is a value play. The PE ratios for all of the tech biggies, MSFT, HPQ, IBM, ORCL, INTC, CSCO, etc. are all near 10 year lows. My take on this... simplify. Simply buy either QQQQ or XLK. Or, even better yet, buy an ETF which goes up twice as fast as the stocks. There are a few of these. One example is symbol ROM.

2008 Mar 09 10:10 AM

[jcrash:]

NVDA, probably more undervalued than most of those.

2008 Mar 09 02:59 PM

[Santosh Sankar:]

I really like CSCO, although there will be "softness" in the domestic economy, I would think in mid 2009 corporate spending towards network upgrades will ramp up. It is time to replace older networks with faster ones. However this is a solid pick and a sure bell weather stock.

2008 Mar 09 06:57 PM

[Ames Tiedeman:]

You are assuming those earnings estimates will come in. Highly unlikely as the economy turns down. Take SNDK. It is being hit so hard with flash prices. How on earth do you think they will earn more money in 2008 than they did in 2007?

2008 Mar 09 08:04 PM

[Ex CDO Banker:]

Chad, Take a look at your Feb 26 article, "Beware of Phrases Like "Cheapest in 20 Years"".
I think this this particular "Tech is Cheap" article should be written with some consideration of your warnings issued a couple weeks ago.

2008 Mar 10 11:01 AM

[Philip Obal:]

Two more tech stocks that are "value" buys are GlobalScape (GSB) with a low PE of 8 (right now) and American Software (AMSWA) which pays s nice dividend.

GSB has a very nice potential to climb during 2008.

2008 Apr 22 08:56 AM