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    7 Big Tech Winners Of 2011

    Mon, 12/26/2011 - 05:47 EDT - Seeking Alpha
    • AAPL
    • ARMH
    • IBM
    • INTC
    • Lalit Sharma
    • MSI
    • NUAN
    • NVLS

    By Lalit Sharma:The following is a list of seven technology stocks which have gained significantly in 2011, versus the essentially flat NASDAQ composite index.
    Ticker Company YTD Gains
    AAPL Apple Inc. 25.03%
    IBM International Business Machines Corp. 25.89%
    INTC Intel Corp. 16.01%
    MSI Motorola Solutions, Inc. 28.63%
    ARMH ARM Holdings Plc. 30.60%
    NUAN Nuance Communications, Inc. 41.42%
    NVLS Novellus Systems, Inc. 27.23%
    I expect Intel, Apple (AAPL) and IBM to continue outperforming going forward. However, one stock which has become overvalued after its 2011 outperformance is ARM Holdings (ARMH), and I expect it to underperform going forward. ARM Holdings designs microprocessors, physical intellectual property (IP) and related technology and software, and sells development tools. The company serves fabless mobile, consumer, and auto / industrial markets. ARM looks expensive trading at over 40x forward earnings. Its royalty per chip has declined at ~7.6% annually, as its mix has shifted to lower value non-mobileComplete Story »

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