Two Tech Bets
01/19/2007 12:00 am EST
CoolCat editor Kevin Kennedy revisits the technology industry for his new recommendations. Here he picks two survivors of the tech boom-and-bust, proving just how profitable bottom-up analysis, or researching and picking the right companies, can be...
"Featured tech bubble survivor stock, F5 Networks (FFIV NASDAQ GS), provides application delivery networking solutions that make applications secure, fast, and available for everyone, helping organizations get the most out of their investment.
"By adding intelligence and manageability into the network to offload applications, F5 Networks optimizes applications and allows them to work faster and consume fewer resources. The company's extensible architecture intelligently integrates application optimization, protects the application and the network, and delivers application reliability--all on one universal platform.
"F5 Networks will report first-quarter earnings Jan. 24 and will hold a meeting for analysts and investors in New York Feb. 7. Presentations by key executives will focus on F5's assessment of its current and future market opportunities, the company's go-to-market strategy, and its roadmap for product development and integration.
"The company filed restated quarterly and annual financial statements with the Securities and Exchange Commission in mid-December after conducting a review of its historical stock option grant practices. F5 is now current with all financial filing requirements and has regained full compliance with NASDAQ. The company's restated consolidated financial statements reflect a decrease in net income of approximately $23.5 million for the periods 1999 through 2005. For more information, visit www.f5.com. Possible strategy: Buy at $79.06 or less with sell stop at $71.99.
"Featured NASDAQ 100 stock, Fiserv (FISV NASDAQ GS), provides information management systems and services to the financial and health benefits industries. Leading services include transaction processing, outsourcing, business process outsourcing (BPO), software and systems solutions. The company serves more than 17,000 clients worldwide and is the leading provider of core processing solutions for banks, credit unions and thrifts in the United States.
"Fiserv was ranked the largest provider of information technology services to the financial services industry worldwide in the 2004, 2005, and 2006 FinTech 100 surveys. Fiserv Health provides health plan management, pharmacy benefits management, and BPO services to the managed care market and self-funded commercial and government employers and health plans.
"Fiserv reported more than $4 billion in total revenue for 2005. The company will report fourth-quarter and fiscal 2006 earnings Jan. 31. For more information, visit www.fiserv.com. Possible strategy: Buy at $53.58 or less with sell stop at $50.99."