"We are upgrading our rating on Intel (INTC, OTC, around $51) from a hold to a buy," says Argus Research of New York. The company, the leading maker of semiconductor chips, remains strong, with the personal computer market expected to grow at a 10 percent rate for the next two years.
"We believe the stock is once again poised for further appreciation. Trading at a 15 percent discount from the market multiple, we consider the stock undervalued. We look for appreciation potential of 20 percent."
"Novell (NOVL, OTC, around $50) is a leading provider of computer network systems software. The company is well-positioned to generate 25 to 30 percent annual earnings growth over the next few years," says Standard & Poor's The Outlook of New York.
"Its operating system is the de facto industry standard with more than 800,000 installations. The stock has nearly tripled since its 1990 low, but its P/E of 26 is still well below its five-year average. The stock is an appealing speculation for superior appreciation potential."
"Marcam (MCAM, OTC, around $21) is a leading supplier of software used by manufacturing companies to increase efficiency," says the Stock of the Month Club of Boston.
"The company began as a consultant to manufacturers. Due to the lack of software for the industry, the company began to produce its own. Earnings have grown at a 450 percent rate over the past five years.
"The company is in a position to ride out any potential downturn in the economy. Our target is a move to the $32-$35 level."
"Micron Technology (MU, NYSE, around $15) appears to have a very bright future. There is a real possibility that the company will see better pricing for its computer memory chips as demand for computers improves," says John Dessauer, Dessauer's Journal, Orleans, Mass.
"Over the next several years, analysts expect earnings to recovery to their old highs of $4.14 per share. I look for the stock to rise to the $18-$20 level over the near-term. The stock remains an attractive buy for long-term investors."