Needham & Company Trends In IT Hardware: 2011 Year In Review and 2012 Outlook
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Price: $850.00 -0.03%
Rating Summary:
30 Buy, 18 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
30 Buy, 18 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Needham & Company Trends In IT Hardware: 2011 Year In Review and 2012 Outlook
Needham analyst, Richard Kugele, said, "We believe that 2012 will be the year of ‘The Story Stock’ as the issues that currently cloud investment horizons and create uncertainty (and therefore volatility) are likely to persist. Therefore, we argue investors need to have solid data and strong convictions in the specific names they own in 2012, rather than thematic views. Within our universe, we also break our top picks into 1H and 2H names. In that vein, for 1H12 we highlight Seagate Technology (NYSE: STX) and OCZ Technology (NYSE OCZ). As we look into 2H12, we would focus investors on names that have meaningful hurdles to overcome in 1H12 and whose stocks will likely bottom in the coming quarters. Specifically, we highlight Western Digital (NYSE: WDC)."
"Overall, the PC and IT spending impacts (partially offset by Romley) likely represent meaningful headwinds to Dell (Nasdaq: DELL) and H-P (NYSE: HPQ) and potentially the distributors Ingram Micro (NYSE: IM), Tech Data (Nasdaq: TECD) and SYNNEX (NYSE: SNX). However, as the distys are largely trading at or near book value (and Dell at an extremely low multiple) we do not see a need to downgrade today. However, we do not believe that HP’s stock rise post the appointment of Ms. Whitman incorporates the risk to spending in 2012."
Needham analyst, Richard Kugele, said, "We believe that 2012 will be the year of ‘The Story Stock’ as the issues that currently cloud investment horizons and create uncertainty (and therefore volatility) are likely to persist. Therefore, we argue investors need to have solid data and strong convictions in the specific names they own in 2012, rather than thematic views. Within our universe, we also break our top picks into 1H and 2H names. In that vein, for 1H12 we highlight Seagate Technology (NYSE: STX) and OCZ Technology (NYSE OCZ). As we look into 2H12, we would focus investors on names that have meaningful hurdles to overcome in 1H12 and whose stocks will likely bottom in the coming quarters. Specifically, we highlight Western Digital (NYSE: WDC)."
"Overall, the PC and IT spending impacts (partially offset by Romley) likely represent meaningful headwinds to Dell (Nasdaq: DELL) and H-P (NYSE: HPQ) and potentially the distributors Ingram Micro (NYSE: IM), Tech Data (Nasdaq: TECD) and SYNNEX (NYSE: SNX). However, as the distys are largely trading at or near book value (and Dell at an extremely low multiple) we do not see a need to downgrade today. However, we do not believe that HP’s stock rise post the appointment of Ms. Whitman incorporates the risk to spending in 2012."
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