Saturday, October 30, 2010

Some "Last Mile of Fiber" small cap names and some other worthy Tech stocks

Dow Jones Industrial Average   11118.49  (UP) Week ending 10-29-2010

I thought I would be clever and do a blog on stocks that are making money in the "last mile of fiber" space with the Carlyle Group interest this week to buy Commscope (Symbol CTV, $31.65). What I found was  a few small cap names of interest and some other Tech names I found that would be good 1 to 3 year investments for Total Return. The old adage "you should not invest in things you don't know about" applies here, as there are all different ways to get past that last mile including: wireless, copper cable with fiber assistance (phantom DSL), cable, fiber itself, fiber-to-the-node broadband over powerline, satellite, microwave and it goes on and on.   

Alliance Fiber Optic Products, (Symbol AFOP, $11.00) is a small cap name for you. The stock is up 100% this year. Earnings for 2010 of .72 cents a share and 2011 of .87 cents a share. This well capitalized company has a lot of head room for sales increases.

DragonWave (Symbol DRWI, $8.15) is an Ottawa, Canada based company that derives allot of revenue from wireless backhaul of voice and data. DragonWave has just won a pair on contracts and are focused on the new LTE and WIMAX markets. As always these small cap names can take you on a wild ride on the stock chart, you just need to remember that your ultimate destination is up.

Ceragon Networks (Symbol CRNT, $ 11.06) Tel Aviv based company that is a provider of high capacity LTE/4G ready wireless backhaul solutions. Both Ceragon and DragonWave are both active in the cellular market in India. Projected earnings for 2010 of .42 cents and for 2011 .65 cents a share. This is another stock that has been on a wild one year ride, so hold on to your hat!

The next three tech stocks I found in my travels in no particular order are well established and will work for most portfolios for Total Return. 

F 5 Networks, (Symbol FFIV, $117.70)Altera (Symbol ALTR , $31.24 ),  First Solar Inc, (Symbol FSLR, 137.68).  These guys are like Halliday, Oswalt, and Hamels. You may not win the World Series , but your team will definitely have 90+ Wins

I should always mention that tech stocks historically have always been the source of my biggest losses in markets past, but also some of my biggest gainers.  So if you are going to stand at the plate, you need to swing the bat to hit a home run, otherwise you will be out "Looking", which Ryan Howard of the Phillies can tell you, is a very bad thing. 

Be Happy..... Freewilly 

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