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Tech Stocks: Two Picks and a 'Hold'

Although IBM missed out on acquiring Sun Microsystems, the former will have more merger opportunities that will help improve competition, said Peter Misek, technology analyst at Canaccord Adams.

“There are a couple acquisitions—more small,” Misek told CNBC.

Misek said IBM should acquire smaller firms if it wants to compete against the likes of Cisco Systems .

“Cisco’s entered IBM’s market in the server side so IBM can go after somebody like F5 or Juniper,” he said. “That would allow IBM to compete head-to-head with Cisco and really take their datacenter business to the next level,”

Misek said he disapproves of Oracle and Sun’s latest deal.

“I don't think the union of Oracle and Sun make a ton of sense,” he said. “Oracle is probably going to wither away on the hardware side—it’s something that they don’t have a lot of experience in…We’re very confident that IBM has no interest in taking another run at Sun.”

Recommendations:

He likes Apple and Research in Motion.

Misek has a "Hold" rating on IBM — "We wouldn’t be a buyer of the stock until it was $90 or less. We don’t think the risk-reward is favorable."

Disclosure:

Misek and his firm do not own any shares of IBM.

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