Buy.com led the Cyber Monday charge this year, having the best sales day in its history. While predictions for this year's retail holiday season have been pretty dire, it would seem more holiday gift buyers have the "shop in your shorts" mentality, taking advantage of free shipping and no sales tax to ramp up online holiday retail sales.

Buy.com, which competes with larger retailer Amazon.com (NASDAQ: AMZN), has been around for over 10 years and features retailer categories just as diverse as its larger competitor. Some of the folks I've talked to say that, for the first time, they are doing the majority of their shopping online this year, mostly due to the deals they receive, the lack of local sales tax and with the majority of goods being offered with free shipping.

In other words, we're all value shoppers this holiday season. Once the Black Friday novelty wore off last weekend and prices returned to normal, shoppers kept lining up at the virtual doors of online merchants and will continue to do so until the end of the Christmas holiday. When one of the largest online retailers has its best sales day in its history despite the bleakest economy in its history, perhaps that is a signal of a paradigm shift. For many of us, it happened a long time ago. For the others, the gravy train of online shopping is becoming a clearer picture every day.

Most investors do not think of tech companies as being debt-laden. Many became pubic by raising cash in IPOs over the last decade. Any debt they had was paid off with capital raised. The rest stayed on the balance sheet.

A study by Paul Kedrosky written up in Barron's paints a very different picture for some companies. Several large corporations, including Dell (NASDAQ: DELL), Take-Two Interactive (NASDAQ: TTWO), and Wipro (NYSE: WIT), have long-term debt-to-equity ratios of over 2x. For some big tech names, the figure is over 6x.

(Unfortunately, Barron's had to pull its piece because Paul's data appears to have been inaccurate.)

Under normal circumstances, this kind of data would be benign. But with the credit markets in crisis, refinancing debt on terms more favorable than firms have currently may be very difficult. Or, if the bond market gets very right, a company like Ingram Micro (NYSE: IM) could get in a real pinch.

There is another side to this. Cash-rich companies like Microsoft (NYSE: MSFT), Google (NASDAQ: GOOG), and Cisco Systems (NASDAQ: CSCO) may be able to shop for bargains. For them to pick up a company and pay its debt down may not be a significant problem.

More tech M&A this year? Almost certainly.

Douglas A. McIntyre is an editor at 247wallst.com.

MOST NOTEWORTHY: Ingram Micro (IM), SYNNEX Corp (SNX), Yahoo! (YHOO), Macquarie Infrastructure (MIC) and Polypore International (PPO) were today's noteworthy initiations:

• Banc of America assumed coverage of Ingram Micro (NYSE: IM) with a Buy rating and $23 target, as the firm is positive on the company's balanced growth and margin expansion.

• Banc of America also initiated shares of SYNNEX Corp (NYSE: SNX) with a Buy rating and $24 target, as they believe cost synergies and mix in 2007 will drive 2008 leverage and share appreciation.

• ThinkEquity transferred coverage of Yahoo! (NASDAQ: YHOO) with an Accumulate rating and cut its target to $27. ThinkEquity believes Yahoo!'s challenges, which include employee turnover risk, slower user growth, competitive pressures and limited upside in search, are unlikely to be fixed near-term by the new team of management.

• Macquarie Infrastructure (NYSE: MIC) was initiated with a Buy rating and $51 target at Citigroup, as the firm believes management fee concerns are priced into shares and that the recent acquisition of Mercury Air and San Jose Jet Center will drive a 6% increase in dividend by the end of 2007.

• Bear Stearns started Polypore International (NYSE: PPO) with a Peer Perform rating on valuation.

OTHER INITIATIONS:

• BMO Capital initiated shares of Hewlett-Packard (NASDAQ: HPQ), Dell (NASDAQ: DELL) and Western Digital (NYSE: WDC) with an Outperform rating and shares of Seagate Technology (NYSE: STX) with a Market Perform rating.

• Leerink Swann started shares of Applied Biosystem (NYSE: ABI) with an Outperform rating.

• Lehman Brothers initiated shares of Blackstone Group (NYSE: BX) with an Overweight rating and $32 target.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

With the market being propelled upward due to private equity and corporate acquisitions, investors should not stay on the sidelines. Rather, they should target private equity's next frontier -- IT services. Of the companies in this sector, Unisys Corp. (NYSE: UIS), Perot Systems Corp. (NYSE: PER) and Ingram Micro, Inc. (NYSE: IM) may be worth examining.

A few months ago, I suggested several sectors and companies that private equity could target next. On Friday, TheStreet.com reiterated one of those sectors -- IT services. Here's how much seven such companies have gone up or down since my March 29th post along with their market capitalizations ranked by their Price/Earnings to Earnings Growth (PEG) ratios: