Data center Savvis boasts a $1.45 billion market cap and provides IT services for midsized to large clients such as Hallmark and Discovery. The company is increasingly focused on cloud computing, although it has offered such services since before they were hot industry buzzwords. "Today, we all talk about the cloud and virtualization. Back when we started, it was simply known as utility computing."
Today, he sees the companies that can offer efficient IT outsourcing as outstanding investing opportunities. "Coming out of the recession, companies haven't built up their IT staffs," Ousley says. That makes Savvis and its competitors poised to profit, and that's why the industry makes up a large chunk of his watchlist. (For your convenience, you can now create your own version at MyWatchlist.com, your free customized hub to follow the performance and Fool coverage of the companies you care about.)
Similarly, Rackspace Hosting
He's also watching Amazon.com
Moving up the value chain, Ousley has his eye on two technology giants: IBM
Dell, Ousley feels, is well-served by "getting aggressive" on the service side. As an investor, he thinks the company has an attractive valuation and holds promise for growth. He also had been watching Compellent Technologies as another promising investment, but with Dell buying that company earlier this week, he now has two opportunities in one -- depending on what happens to Dell's share price as a result.
IBM feeds Ousley's conservative side. "It's the most predictable of the tech companies ... in a good way." The company is well-positioned in the IT services space and is making excellent headway in its global expansion. Overall, Ousley says, it's a solid investment.
Finally, fed by his background in the storage business, Ousley is always intrigued by Seagate Technology
"This is a great company to buy on dips because they always come back."
And that's why it pays to watch. You can make smarter investing decisions with your own version of My Watchlist, new and free from the Fool. Click below to start following one of the stocks mentioned above:
Roger Friedman doesn't own shares of any companies mentioned, but they're all now on his watchlist. Rackspace Hosting is a Motley Fool Rule Breakers recommendation. Amazon.com is a Motley Fool Stock Advisor selection. The Fool owns shares of IBM. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.