News Column

Tech Outlook: Altera, Ciena, Cisco, Citrix and Xilinx

Dec. 12, 2012

So far, the roadmap Editor Paul McWilliams laid out for 2012 has been extremely accurate. He called the peak in March 2012 and warned readers of the subsequent correction two days before it started. Following this, once the markets bottomed, he predicted we would see prices rally through the Q2 earnings season. As it turned out, this was one of the strongest rallies the market has seen in a very long time.

However, following the close on September 14, 2012, McWilliams published an updated Strategy Review and, in that, predicted again that the markets were due for another drop ahead of the November election. This time he nailed the year-to-date high to the day.

In his latest reports, McWilliams offers critical insight into Apple's recent weakness and adds valuable commentary on the roles of key suppliers. Nearly a decade ago, McWilliams advised Next Inning readers that Apple was positioned to win big when it was trading for less than $10 per share (split adjusted), and since then McWilliams has become one of the most trusted voices covering Apple and the consumer ecosystem business model it has pioneered. McWilliams' new, must-read report on Apple is available for free to trial Next Inning subscribers.

Topics discussed in the latest reports include:

-- Ciena: Are analysts and investors making a mistake when they view Ciena as a proxy to cover the fiber optics sector? What does McWilliams say is the correct way to classify Ciena? Is Ciena poised to benefit from a rebound in demand from the wireline telecom sector? What other companies are well positioned to benefit from this trend? What other trend might uniquely benefit Ciena? After alerting Next Inning readers to sell Ciena in April 2011 at its then current price of $27.50, which represented a 210%+ profit from the suggested buy price, McWilliams suggested buying Ciena shares in October 2011 at their then current price of $11.57. With Ciena now trading solidly in the mid-teens does McWilliams think it's time to take profits again or let the investment ride through earnings season? During the last decade, McWilliams has called the peaks and valleys for Ciena with uncanny accuracy. Trial subscribers will have full access to McWilliams 1,700+ word Ciena earnings preview.

-- Cisco and Citrix: Should investors view rumors of a possible acquisition of Citrix by Cisco as credible? What does McWilliams think is behind these rumors? What stock should investors interested in boosting exposure to the virtualization trend pair with Citrix?

-- Altera and Xilinx: As we prepared to enter 2012, McWilliams forecasted Xilinx would outperform Altera. Because Altera had been the big winner during the last two years, this was a bold forecast that went against the grain of Wall Street forecasts. So far, however, McWilliams is right. Year to date, the price of Xilinx is up 12.1% while the price of Altera is down 12.5%. Does McWilliams continue to view Xilinx as a more attractive investment than its rival Altera? What key trends in the programmable logic sector are important to Xilinx and Altera investors and how does McWilliams see these trends shaping up for 2013?



Source: Copyright PRNewswire 2012


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