Red Herring’s Tech Catches for Next Century
Every brokerage, Web site and investing neophyte seems to be weighing in these days with stock selections for the next a) year, b) decade, c) century or d) millennium.
But because Red Herring magazine specializes in technology coverage, we figured its “10 Tech Stocks for the Next Century,” announced Wednesday, might not be too fishy--even if the headline is a stretch. The San Francisco-based magazine’s picks:
* Broadcom: “In addition to sitting in the sweetest spot in the communications space--manufacturing semiconductors for every segment of the broadband environment--[it] is a well-run, ferociously aggressive market pioneer.”
* Charles Schwab: “It has figured out how to maintain customer loyalty through offline hand-holding while still maintaining the cost benefits of an Internet-centric company.”
* Cisco Systems: “The leading supplier of high-performance networking products has set its sights on selling to the much larger service-provider market, aiming to make sales to large telecommunications providers or even next-generation, high-speed optics networks.”
* CMGI: “The only [pure] Internet company to make the list, it incubates companies for a song and then takes them public for mega-multiple returns on its investments.”
* Dell Computer: “The PC is not dead. Toss in the company’s own Internet initiative, which offers a new range of electronic-commerce possibilities . . . and a fairly robust picture emerges.”
* EMC: “Eighty percent of the top Internet names use EMC’s enterprise storage systems and software, and its market share is poised to continue rising over the next several years.”
* Microsoft: “Microsoft is now on a quest to conquer Internet communications and services. They’ve got the money.”
* Nokia: “The single trend that will define the future of technology and the world’s communications structure is wireless communications. Nokia, the leading-edge supplier of appliances and networks for the wireless era, is a core holding among leading money managers.”
* Sun Microsystems: “Sun’s shrewd bet on Java and Jini, its server and appliance technologies that allow interfacing and compatibility among diverse devices, has driven business and created phenomenal brand recognition.”
* Time Warner: “In a world where media and entertainment will be coming at us from all sides, even some old media companies will be golden in the Internet age. Time Warner not only feeds the fat pipes of the future, but as the nation’s second-largest cable operator, it owns a lot of them as well.”
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Tech Picks
Red Herring magazine has chosen 10 “Tech Stocks for the Next Century,” its favorite long-term investments in the sector.
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Ticker Weds. Est. 2000 3-5-year Company symbol close P/E ratio EPS % growth* Broadcom BRCM $254.00 293 46% Charles Schwab SCH 32.50 49 22 Cisco Systems CSCO 102.50 103 30 CMGI CMGI 275.38 N/A 45 Dell Computer DELL 50.31 69 33 EMC EMC 99.25 94 30 Microsoft MFST 117.56 72 25 Nokia NOK 165.00 75 28 Sun Microsystems SUNW 74.56 84 20 Time Warner TWX 66.94 184 15
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N/A: Not available (loss expected)
*Projected annualized earnings-per-share growth
Sources: Times research, Bloomberg News
