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Stock Picker: Tech Sector 'Reboot' Creating New Winners

Thursday, 11 Mar 2010 | 9:47 AM ET

Ten years ago, the Nasdaq hit its all time high of near 5,048 in the midst of the tech bubble. Today, the index is currently trading near 1143, so does it have further room for growth? Andy Hargreaves, senior research analyst at Pacific Crest Securities, and Paul Kedrosky, senior fellow at Kauffman Foundation and a CNBC contributor, shared their stock picks and sector plays.

Where the Tech Plays Are
A look at the tech plays now after ten years the Nasdaq hit its all-time high, with Paul Kedrosky, TheStreet.com and Andy Hargreaves, Pacific Crest Securities.

“It’s going to be really difficult to reproduce the productivity gains we got in the '90s from the PC wave and the Internet wave,” Hargreaves told CNBC.

“There are innovations still going on that will create value, but whether or not they can create the kind of value that we saw back then remains to be seen—I think it’s unlikely.”

Hargreaves said investors should focus on defending their portfolios against risks.

“You have to find really strong secular trends,” he said. “The move to online spending is still going on, the move to mobility is still going on.”

In the meantime, Kedrosky said there are some “great winds” that are pushing a few tech names higher.

“Just like what happened 10 years ago, we’re in the process of rebooting the whole tech sector and as we reboot, we’ll see a whole list of new names come forward, most of which are private now,” he said.

“The names that I’m interested in are the ones that are going to come public over the next 18 months: Facebook, LinkedIn and Twitter,” he recommended.

Hargreaves Likes:

Apple

Dolby Labs

ROVI

Kedrosky Likes:

Google

Amazon.com

Hewlett-Packard

Applied Materials

Linear Technology

Cisco Systems

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More Investor Intelligence:

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CNBC Data Pages:

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CNBC Slideshows:

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Disclosures:

Hargreaves does not own shares of AAPL, BBY, DMRC, DLB, LOGI, NFLX, RNWK, ROVI, UEIC, but Pacific Crest does make a market share in the shares.

No immediate information was available for Kedrosky or his firm.

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Disclaimer

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TECHNOLOGY
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AMAT
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AMZN
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CSCO
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DLB
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HPQ
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LLTC
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ROVI
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AAPL
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GOOGL
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