Bears Hide From These Tech Stocks: 2 Buy And 3 Sell Ideas
The first two trading weeks 2013 saw short-selling volume decline substantially for a number of big-name technology stocks. The decline could be due to investors winding down their bearish hedge against another bullish position. It could also mean investors expect the share price to increase in the near-term.
Below are five companies worth looking at in greater detail. As it will be discussed, bigger moves in either direction are expected for these stocks. This could provide a trading opportunity for investors. [More Lists: 3 Buying and 3 Bearish Ideas as Samsung Earns Title of Top Chip Buyer]
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1. Microsoft Corporation (MSFT): Market cap at $233.28B, most recent closing price at $27.85.
Short-selling volumes declined by 14.6% for Microsoft Corporation, ahead of quarterly earnings. When the software giant reported on January 24, Microsoft demonstrated continued revenue strength in most of its divisions. Windows revenue rose 24% (including pre-sales). Its Office division rose 3%, server and tools up 9%, and online services up 11%. The company clearly benefited from ongoing corporate spending, while the PC environment was weak.
Investors should be positive on Microsoft. They are more interested in the potential for Windows Phone 8 and Surface RT/Pro in 2013. The Xbox refresh will also be announced in a few months.
2. Research In Motion Limited (RIMM): Market cap at $7.22B, most recent closing price at $13.78.
Research In Motion Limited is viewed by many as lacking prospects. Shares were bid up to $18.32 recently, as short-selling volumes declined 1.4% ahead of the run-up. The run-up was a classic rise before the rumor, sell after the news. The Blackberry 10 release on January 30 marked a new paradigm for the company and possibly for the smartphone market.