Analyst: Don't Fear Tech Sector
The collapse of negotiations with Microsoft may have sent Yahoo shares tumbling, but the development is not scaring Dave Rovelli of Canaccord Adams away from technology entirely. Nor should it scare investors, he says.
"There's some healthy profit-taking right now," he told CNBC.
"It's good for the market; we're up 11 percent in the last seven weeks; it's a big move, and I like to see some profit-taking."
He sees earnings from Cisco and Disney setting the tone for market activity as the week goes on.
What looks good to him right now? A metering company, Itron.
"We love this stock," he said. "We've loved it for a while; I think it's got some upside here...they look for a more accurate way for utility companies to get readings on electricity, gas and water."
Rovelli thinks Itron will get a pop later this year.
"They have some contracts that should come through...they have one out in California that's pending as we speak," he said.
His other pick is Research In Motion, which is set to introduce six new smart phones this year.
Disclosure information for Rovelli was not immediately available.