"As the tech industry has matured, some technology companies are beginning to devote some of their cash flow to dividends," explains George Putnam, who notes, "This helps reduce downside volatility and offers some positive return when the stock prices lag."

In his industry-leading The Turnaround Letter, the advisor highlights some dividend-paying tech stocks; here a look at three of those picks.

"Many tech stocks have underperformed for the last couple of years as capital spending on technology products has been weak. The sector will eventually rebound, but the timing is far from certain.

"A conservative way to play the industry is to focus on technology stocks that pay dividends. That way you at least get paid something while you wait for the rebound. The following technology stocks pay decent dividends, many of them higher than the average 2.1% dividend paid by the stocks in the S&P 500 Index.

Continue reading Tech stocks with dividends: A trio of turnarounds

Tech stocks with dividends: A trio of turnarounds originally appeared on BloggingStocks on Fri, 18 Jul 2008 10:10:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Jefferies initiated Dreamworks Animation (NYSE: DWA) with a Hold rating and $25 target. The firm believes the company needs stronger-than-expected box office performance to drive material share appreciation, which they view as a risky bet given recent non-Shrek film performance, slower DVD sales and a tough economy.
  
• Merriman assumed coverage of Pharmasset (NASDAQ: VRUS) with a Buy rating, as they believe the current share price does not adequately reflect the company's strong clinical data, potential for clinical milestones, or potential for revenue generation. They believe shares could trade to a fair value range of $20-24 in the next 12 months.
  
• Merriman initiated shares of Vertex Pharmaceutials (NASDAQ: VRTX) with a Neutral rating, and recommends investors hold pending a greater understanding of clinical timelines and results for other HCV drug candidates.

• Merrill Lynch initiated Time Warner Telecom (NASDAQ: TWTC) with a Neutral rating.
  
• UBS initiated Protalix (AMEX: PLX) with a Buy rating and $6 target.
  
• Pacific Growth assumed United Online (NASDAQ: UNTD) and Internet Brands (NASDAQ: INET) with Buy ratings.

Analyst initiations: DWA, VRUS and VRTX originally appeared on BloggingStocks on Tue, 11 Mar 2008 11:20:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Goldman upgraded the U.S. Refiners to Attractive from Neutral, citing valuations; the firm raised its rating on CVR Energy (NYSE:CVI) and Holly Corp (NYSE:HOC) to Buy from Neutral.
  
• Lehman upgraded shares of Rigel Pharma (NASDAQ:RIGL) to Overweight from Equal Weight following the company's positive R788 data.
  
• Bear Stearns said the Lufthansa (DLAKY) investment gives JetBlue (NASDAQ:JBLU) some breathing room to execute on its turnaround but notes the company's long-term strategy remains in question. Bear raised its rating on JetBlue to Peer Perform from Underperform.

• UBS upgraded Disney (NYSE:DIS) to Buy from Neutral.
  
• Wachovia upgraded Jack in the Box (NYSE:JBX) to Outperform from Market Perform.
  
• Jefferies upgraded United Online (NASDAQ:UNTD) to Buy from Hold.

Analyst upgrades: U.S refiners, RIGL and JBLU originally appeared on BloggingStocks on Fri, 14 Dec 2007 10:43:00 EST. Please see our terms for use of feeds.

Last December, over 100 stocks were featured in our Top Picks for 2007 report. Now, at mid-year, we turn to the 20 advisors whose picks showed the strongest gains to get an update on their previous picks, as well as a new favorite stock for the second half of the year.

Mark Mowrey, editor of the Prudent Speculator TechValue Report, chose Cogent Inc. (NASDAQ: COGT), which rose 41% as of June 1, 2007. Although he maintains a $24 price target for those who own the stock, he no longer is recommending purchase.

For his new top idea, Mark looks at United Online Inc. (NASDAQ: UNTD). The advisor explains, "For as many reasons to be wary of the company, we find more to like about this net-centric company.

"Founded as Juno Online Services in May 1995, and formed via the merger of that company with fellow dial-up Internet services provider NetZero in June 2001, United Online is one of a select few surviving early Net access players.

"As UNTD milks the dial-up business for cash flow, management hopes to transition as many of those paying customers as they can to a new broadband offering. Still, revenue from the communications segment is declining at a rapid clip, falling 13 percent in 2006 to $375.9 million.

"So what is there to like about a company with declining revenue in its core business, the only savior for which is entry into an even more competitive space? The general answer is the provision of services folks utilize once they're already on the Net.

Continue reading Top 20 advisors: Mark Mowrey goes 'net-centric' for UNTD

Top 20 advisors: Mark Mowrey goes 'net-centric' for UNTD originally appeared on BloggingStocks on Fri, 22 Jun 2007 10:34:00 EST. Please see our terms for use of feeds.

People use the internet for different things, and service providers who want to expand their customer bases know they need to appeal to casual e-mailers and occasional browsers, as well as to intensive business users. There is an outfit in Woodland Hills, California that is well-acquainted with this notion and offers a variety of services, from free access to full broadband capacity.

United Online (NASDAQ: UNTD) provides both internet access and popular content. Its communications unit gets customers on the Web through value-priced NetZero, Juno and BlueLight internet portals. Its Content & Media segment provides social networking through its Classmates Online and The Names Database sites. Its MyPoints site operates an online rewards program for members who take surveys and shop with participating merchants. The firm also maintains millions of personal web sites, offers photo sharing services and provides advertisers with real-time market research. Altogether, the company has over 60 million registered accounts. Competitors include Time Warner Inc. (NYSE: TWX), Comcast (NASDAQ: CMCSA), Verizon Communications (NYSE: VZ) and AT&T (NYSE: T).

The company pleased investors last week, when it reported Q1 EPS of 27 cents and revenues of $129.9 million. Analysts had been looking for 25 cents and $125 million. Management also guided Q2 revenues to $128-$132 million ($124.50M consensus) and FY07 revenues to $510-$520 million ($498.69M consensus). The CEO particularly cited growth in the Content & Media unit for the solid numbers.

Continue reading United Online: The broad spectrum of internet access possibilities

United Online: The broad spectrum of internet access possibilities originally appeared on BloggingStocks on Tue, 08 May 2007 15:15:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Jefferies assumed coverage of International Game Tech (NYSE: IGT) with a Buy rating and $47 target citing an attractive risk/reward.

• Big 5 Sporting Goods (NASDAQ: BGFV) was started with a Sector Performer rating and $33 target at CIBC, expecting shares to be driven by an operating margin recover and improving cash flows.

• CVS/Caremark Corp (NYSE: CVS) was reinstated with an Overweight rating at Lehman Brothers and resumed with an Overweight rating at Morgan Stanley.

• JP Morgan believes the rough environment, growing competition and valuation warrants IHOP Corp (NYSE: IHP) to start with a Neutral rating.

• B. Riley initiated shares of United Online, Inc (NASDAQ: UNTD) with a Buy rating and $18 target.

• Bear Stearns started T-3 Energy Services, Inc (NASDAQ: TTES) with an Outperform rating and $32 target.

• Morgan Stanley initiated shares of Vanda Pharmaceuticals Inc (NASDAQ: VNDA) with an Overweight rating and $29 target.

• American Technology initiated shares of Bankrate, Inc (NASDAQ: RATE) with a Buy rating and $48 target.

• Altus Pharmaceuticals Inc (NASDAQ: ALTU) was initiated with an Outperform rating and $20 fair value estimate at Leerink Swann.

Analyst initiations 4-30-07: BGFV, CVS, IGT, IHP and RATE originally appeared on BloggingStocks on Mon, 30 Apr 2007 11:17:00 EST. Please see our terms for use of feeds.