These Tech Stocks Will Make Me Rich
By
Tim Beyers
November 14, 2008
|
Welcome to week 14 of my stock-picking throwdown with Mr. Market. Let's get right to the numbers:
|
Company
|
Starting Price*
|
Recent Price
|
Total Return
|
|
Akamai
|
$22.23
|
$13.35
|
(39.9%)
|
|
Harris & Harris (Nasdaq: TINY)
|
$6.22
|
$4.72
|
(24.1%)
|
|
IBM (NYSE: IBM)
|
$129.05
|
$84.21
|
(34.7%)
|
|
Oracle
|
$22.75
|
$17.72
|
(22.1%)
|
|
Taiwan Semiconductor (NYSE: TSM)
|
$10.34
|
$7.50
|
(27.5%)
|
|
AVERAGE RETURN
|
--
|
--
|
(29.66%)
|
|
S&P 500 SPDR (AMEX: SPY)
|
$126.28**
|
$91.17
|
(27.80%)
|
|
DIFFERENCE
|
--
|
--
|
(1.86%)
|
Source: Yahoo! Finance. *Tracking began on Aug. 7, 2008. **Adjusted for dividends and other returns of capital.
I'll say this for Mr. Market: He's focused. Who cares if we have a new president? He's more concerned with stop-and-start bailouts than with weak earnings from tech stalwarts such as Intel (Nasdaq: INTC). Thus, my digital portfolio continues to blink a bright shade of red.
But is that really fair? One prognosticator says that Apple (Nasdaq: AAPL) is headed for the mother of all earnings blowouts in January. Cisco (Nasdaq: CSCO), short-term woes notwithstanding, is outrageously cheap. Nibbling at low-priced tech stocks like these now should lead to a feast of wealth later.
Consider history. David Gardner produced a decade of 20% returns by buying and holding the likes of Amazon and eBay in the real-money Rule Breaker portfolio. Tom Gardner's "simpleton portfolio" was also a market-beater. I believe that, with these five tech stocks, I will achieve similar success.
Checkup time!
Now, let's move on to the rest of today's update:
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Harris & Harris' third-quarter letter to shareholders is now available. Net asset value declined, as expected, but liquid assets still account for nearly 50% of this tiny tech investor's market cap at current prices. Crazy.
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IBM may, indeed, be legally in the right with this lawsuit. But it still sounds silly.
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Taiwan Semiconductor reported a 10.6% decline in October sales due to the slowing global economy. I'm waiting it out because, to me, TSMC's dividend yield of more than 5% appears sustainable.
There's your checkup. See you back here next week for more tech-stock talk.
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