Noting that it's always harder to swim upstream, trader Bill Martin looks into groups set to benefit from "rising tides" in the year ahead." Martin, the original found of the Raging Bull website, now features his stock advice in his FindProfit newsletter.
In his latest issue he looks at themes for "nimble investors in the year ahead," including a trio of tech trends - emissions control, print-on-demand, and web analytics.
New Emission Technology:
Martin explains, "Thanks to new government regulations that kicked-in in early 2007, and with additional rules on tap for 2010, the opportunities around automobile and truck emission technologies continue to grow."
His top picks include Tenneco (NYSE: TEN), which he says, "Should be a prime beneficiary, as it has already locked up a number of valuable design wins that are going to market this year and next."
His other top pick is Corning (NYSE: GLW), which is best known for its LCD glass and fiber businesses. Martin notes, "Corning is set to ramp its Environmental Technologies business, thanks to its innovations in diesel emission technologies. We believe that this upside is not priced into GLW stock, and thus we would be interested in accumulating the stock on weakness.
Print On-Demand Technology:
"Enabled by brisk advances in printing technologies, the world of large-scale printing is poised to rapidly change," observes Martin. He notes that it is now becoming more cost competitive for companies and consumers to print exactly what they need when they need it, rather than the inefficient and wasteful process of warehousing thousands of varying forms, brochures, stationery, etc.
He notes, "This is a tectonic shift for the printing industry that will drive consolidation among providers, while rewarding companies that jump out in front with the latest technologies." His picks to play this trend are Cenveo (NYSE: CVO) as well as VistaPrint (NASDAQ: VPRT).
Web Analytics:
"With online advertising, e-commerce, and other Internet businesses becoming increasingly sophisticated," notes Martin, "and with ever-larger dollars at stake, businesses are spending big bucks to track the behaviors of their website visitors, the efficiency of their marketing dollars, and to see how the online channel relates to their other markets."
One early big winner, he notes is Omniture (NASDAQ: OMTR), which he says, "has grabbed the lead in this nascent market." Another beneficiary of this trend is the number-two player in the industry, WebSideStory (NASDAQ: WSSI). He adds, "We believe that the rising tide of web analytics is going to benefit more than just Omniture, and have also added WebSideStory to our buy list."
Steven Halpern is the editor of TheStockAdvisors.com, a free daily website which features the latest stock picks from the nation's leading financial newsletters.