3 great tech stocks on a tear
Apple's iPhone release, widely expected in August, is helping drive these technology issues higher.
By Michael Shulman
Many tech stocks have been on the move this year.
But certain tech stocks will perform even better in the coming months, despite the uncertainty and conflict in Middle East and worries about a stock market correction.
When it comes to Apple (AAPL), it's all about products.
With a new and larger iPhone expected to be announced in August (and all rumors and anecdotal evidence seem to point to this), traders and investors are lining up behind selected tech stocks either in the Apple supply chain or directly connected to the sales of iPhones. You should do the same.
I have three stocks in mind, and each is expected to move even further in weeks and months ahead:
SanDisk has been on a tear based on fundamentals, not speculation. The monthly sale of mobile computing devices -- smart phones and tablets -- surpassed the sale of personal computers in December.
These devices use NAND flash, and SanDisk not only makes NAND, it is the world leader in NAND flash memory and licenses its technology to others who make it and collects royalties. I first recommended SNDK as a stock to trade in the $40s, and it is now above $100.
GT Advanced Technologies (GTAT)
GT Advanced Technologies stock is moving as if it were a speculative company but with a solid sales and revenue base. It is quite a real company. The company has the contract to make the sapphire glass to be used in the new iPhones and has received progress payments from Apple.
GT is manufacturing the glass domestically in Arizona. All the anticipation has led to volatility and great entry point for the stock. It has dipped below $18.
Verizon is an indirect play on tech but a direct play on the ever-increasing demand for mobile bandwidth, which is driving above average growth.
Verizon stock sports a dividend greater than 4 percent and is really cheap, selling under $50.
Why so cheap? Traders and investors have yet to realize the significance of Verizon's absorption of the cash flow from its purchase of the half of Verizon Wireless it did not own (acquired from Vodafone late last year). Once these cash-flow numbers sink in -- probably the next earnings announcement, maybe one more after that -- investors will anticipate a dividend increase.
The new iPhone will also increase Verizon sales.
The bottom line: Verizon should be a $58 to $62 stock but is on sale right now for less than $50.
More from Traders Reserve
- Warren Buffett's 3 most valuable stocks
- 3 off-the-radar stocks ready to rocket higher
- Gun stocks: What do Tea Party's win and Cantor's loss mean for gun industry?
Copyright © 2014 Microsoft. All rights reserved.
New study finds members of this global elite are stashing an average $600 million each in cash -- 10 times more than a year ago.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.