Early thoughts on the tech sector

This post was written by Minyanville contributor Sean Udall. Sean holds position in RIMM, VMW, SUPX.

Goldman Sachs upgraded Research in Motion (NASDAQ:RIMM)saying to buy in front of EPS. I couldn't agree more and in fact was going to say that today. Be that as it may, I doubled my RIMM long into yesterday's weakness and plan to hold into/through EPS report. My quick take is that RIMM could have one of the better reports relative to all the negative analyst actions and commentary in tech and the overall market.
One of my themes for this upcoming EPS season is to look for stocks that have had the most negative analyst commentary coming into the quarter, as no one these days is looking at things like Price/Sales, Price/Book or Price to normalized earnings.

Atheros Communication (NASDAQ:ATHR) was downgraded and I'm looking at that stock ahead of the upcoming EPS season. While I don't view it like I do Broadcom (NASDAQ:BRCM), it's up there in my personal ranking scheme. Looking at adding a long on today's weakness.
Amazingly no one is talking about the Semi's (SOX) here, the index is performing well. Ton's of bad news which doesn't push stock prices lower in this group of late.
I think VMWare (NYSE:VMW)is poised to start its next up-leg, it could go to $32.
At $200 is it time to buy or sell Baidu (NASDAQ:BIDU)? I know many who will take it as a time to buy. Either way it's a heck of a premium generator on either side.
Microchip (NASDAQ:MCHP) has now upped its stake to over 9% in Supertex(NASDAQ:SUPX).

Tags: athr, baidu, bidu, brcm, inthenews, mchp, rimm, semiconductors, supx, technology, vmw, vmware

3-26-2009 @ 2:18PM

http://theinflationist.com/commodities/thursday-turn . brave call, lets see if the dow breaks 8000. i reckon some tech stocks (Google) are undervalued.