It is been a pretty sort year to stock investors, with the S&P showing a 12.8% achieve in 2010. Of course, kindness may possibly still really feel relative soon after a lost decade of unfavorable returns that included the nauseating depths and panic of the economic crisis.
Still, not just about every stock sees gains when a rising tide lifts all boats. Here's a list of this year's ten worst performers in the networking and electronics industries, ignoring organisations that have gone bankrupt or sunk beneath $200 million in marketplace capitalization.
When I compiled a list of the 10 top performing stocks from these two industries in 2010, smaller networking corporations dominated. That came largely at the expense of industry kingpin Cisco, which has struggled to compete in numerous key niches of networking technology. Cisco itself not only was unable to expand in a number of of these growth markets, but also saw its share value lag the market by 28%. Offered Cisco's inability to carry out greater in important markets and competitors pushing into networking that could use toeholds in essential technologies, I proposed that 2011 could see a buyout swell in the market.
1 enterprise whose name is continually swirling in buyout talks, but has yet to be scooped up, is Brocade Communications. The provider has huge item portfolios not only in switches, but also in storage location network products. Nonetheless, despite shopping itself, the company has been unable to acquire a buyer. During the year, it also skilled various setbacks, including weak guidance final quarter, which led to a 31% falloff in its share value through 2010.
The electronics side saw a veritable grab bag of suppliers underperforming. The biggest loser in the business, China Security and Surveillance, suffered along with fellow Chinesesmall-cap peers. Itron posted record profits in 2010, but like EnerNOC and other organizations generating smart electricity merchandise, it saw investors lose faith in the industry. Lastly, Smart Modular Technologies lately collapsed right after reporting poor guidance of its own last quarter.
So what's in shop for networking subsequent year? I suspect we'll see a string of buyouts. While providers like F5 Networks and Riverbed might be a tiny too richly priced to attract a bidding war, there's plenty of other modest fish in the sea to be stalked by networking aspirant HP, as effectively as Cisco and Juniper.
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