A Cheap, Cash Rich Tech Stock

By Bret Jensen: Digital River (DRIV) got crushed last week due to a poorly received earnings report. The stock sold off some 25% as its report matched expectations on the bottom line, but was $3mm light on revenues and provided poor guidance.

By Bret Jensen:Although value is much harder to find in the market after this substantial rally, there is still some to be found for investors willing to look. Here is one small-cap equity with substantial cash holdings, low valuations and that is priced significantly under analysts' price targets to consider.

By Bret Jensen:After three months of continuous rally, values in the market are starting to get harder to find than an atheist in a foxhole given the still uncertain economic outlook. However, there seem to be plenty of cheap stocks in the semiconductor sector. Here are two cash-rich stocks in the sector that look undervalued from a variety of metrics and that consistently beat analysts' earnings estimates.

By Bret Jensen:Most of the tech sector (primarily hardware and chips) have been hit recently on slowing worldwide growth and falling demand. Advanced Micro Devices (AMD) became the latest tech firm to cut its outlook this morning. However, myriad beaten down tech firms have cash rich balance sheets, super cheap valuations and are approaching technical support.

By Bret Jensen:Although I am cautious on the market overall, there are still some sectors that offer good value. The tech sector seems to offer some compelling values right here. One stock I like is Teradyne Inc. (TER). It has improving earnings estimates, low valuations and a cash rich balance sheet.

By Bret Jensen:I recently came across a cheap satellite network solution provider that had a significant sell off recently but looks ripe to rebound. It has a cash rich balance sheet, good growth prospects and a fund just passed the threshold of a 5% ownership level.

By Bret Jensen:Despite the run up in the markets over the last week or so, there are still some values to be had. Two technology stocks that are currently unloved by the market but are priced at 35% or more under consensus price targets are Symantec (SYMC) and Micron Technology (MU).

By Bret Jensen: I have found recently that the small cap tech space offers some of the best bargains around for patient long term investors. Myriad firms are offering cheap valuations, good growth prospects and solid balance sheets. This $4 selection meets all three of these criteria.