Going into this summer and launching during the 2013 holiday season, Microsoft should prove to the masses that its products are just as enviable as Apple’s. They’ve fixed what Steve Ballmer precipitously stated about Windows 8, calling it a “bet the company” moment. The user backlash prompted Microsoft to the tried and true “keep it simple stupid” model of product development. So as the 2013 holiday and shopping season approaches, Microsoft will have a fresh array of products to hit the shelves, including the new XBox One.
Microsoft is a buy at today’s prices. With a $0.92 per share dividend, and $85 billion in assets, we get a stock that’s held up to everything the markets could throw at it since 2001. I’d say Microsoft has a lot to gain, and very little to lose.
Better late than never, Mr. Nokia
If you hadn’t already have seen Nokia Corporation (ADR) (NYSE:NOK)’s surge against Apple and Samsung, you probably have been living under a rock. The chief of Nokia Corporation (ADR) (NYSE:NOK), Mr. Stephen Elop, has launched a new phone advertised to directly assault the iconic iPhone and neuve riche Galaxy.
Nokia Corporation (ADR) (NYSE:NOK) also has climbed aboard the redesign of the camera smartphone to meet consumer’s demand for them vis-à-vis digital cameras. According to DS Rawat, a honcho with India’s technology sector’s government oversight, there’s a 92% probability a consumer will search for a better camera in a smartphone rather than a forking over money for a digital camera.
The convergence of technology will fare well for this once-hot, not-hot, now-warm cellular device maker. With BlackBerry still reeling, Apple phones slowing, and Samsung reaching a plateau, my bet is that Nokia Corporation (ADR) (NYSE:NOK) reemerges as a leader in the cellular industry, and in a big way. Its namesake already has taken a cavalier stance against its rivals by using the Windows-based phones as a launching pad through Nokia Corporation (ADR) (NYSE:NOK)’s hardware contributions. As a matter of fact, Nokia has tripled year-over-year growth and accounted for approximately 79% of all Windows smartphone sales.
Thankfully, Nokia presents an ample buying opportunity in spite of the major traction the business has. The stock is trading 25% off of its 52-week high and is building a solid trading base at $3.00. Investors in general have not given Nokia its just due, and point to the negatives on the company’s financial statements. This current quarter will surprise many, in my opinion. As big funds and tech-heavy hedge funds continue to take more “risk on” trades, Nokia should be on the A-list of stocks to buy in those funds. My advice: get in before they do.
Bet on Healthcare IT companies to bring home the bacon
Who said that buying a great, undervalued company with excellent profit and earnings, along with a strong dividend, is impossible? Look no further than Computer Programs & Systems, Inc. (NASDAQ:CPSI). They are a medical data company that has benefited from the new Obamacare laws.
Free cash flow for this company has increase 28% to $28.7 million on 2012. They paid a healthy $1.00 per share dividend in 2012 and raised the dividend to $2.04 per share in 2013. They are expected to have revenues come in for fiscal 2013 ay around $200 million, while earning over $2.50 per share.
At the close of Friday, June 7, 2013 trading, the stock’s value was $50.40, which relates to a 4% dividend yield. Healthy company, healthy stock, healthy buy.
Computer Programs & Systems, Inc. (NASDAQ:CPSI) will continue to benefit from the medical data information technology due to higher standards in reporting as well as a need to consolidate data and communication to offset higher healthcare monitoring costs. Expect bigger things from this company as the year progresses, and also expect the stock to turn your investment portfolio bright green.
Information Technology and Tech is so…2013
Personally, I don’t remember the time info tech companies were headlined as major buys. That fact is buttressed by the paltry returns the sector has given us while the rest of the market takes off.
What we should take note of is that while others are making gains and taking profits, they have to put the funds somewhere. Technology and information technology stocks are widely untouched, and make bargain-hunting funds like SAC and Sidus Investments in New York drool.
Michael Mandala has no position in any stocks mentioned. The Motley Fool owns shares of Microsoft. Michael is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
The article Tech and IT Stocks Show Wall Street Buying Opportunities originally appeared on Fool.com is written by Michael Mandala.
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