Sunday, August 2, 2009

Beware the "Ides of August" - there are just too many people who are too bullish right now

It really scares me when I hear whole panels of people on the finance shows and they are all so bullish after such a run-up we had in the month of July. There is no way that this thing is going straight up from here. it just doesn't work that way. So patience is the watch word and if you have taken profits here keep them on the sidelines for now.
There are a few technology stocks here that you can keep in mind that have very good balance sheets. Two semi-conductor stocks that have 3:1 Asset to debt ratios. Those are Marvell Technology, (MRVL), and Triquint Semiconductor , Inc. ,(TQNT). I do not own either of these yet but would be interested after the correction.,
My favorite stock in the technology sector and one that I do own is InterDigital , (IDCC) , that is a company I consider to be a baby Qualcomm in the 3G cellular space. They own 3000 patents in the 3G technology and are very well positioned for the transition in cellular phone technology for voice and data. The proliferation of the Apple I-Phones and the RIM Blackberry's sucking up bandwidth with video and Internet web browsing are taxing the current cellular systems and changes will need to be made quickly to keep up with customer demand.

So. for the short term , keep your powder dry and raise some cash for the sidelines.

Best Regards,


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