Inventory in the Tech Five & Dime

Let's update the status of the stocks on the shelves of my Tech Five & Dime.

On Aug. 22, I wrote about the top three tech stocks, according to my models, that were trading between a buck and $3. As the table below shows, Actuate ( ACTU Quote) is up 6.3% since then, Lucent ( LU Quote) is up 13.2%, and Ciena (CIEN Quote) is up 25.1%.

On Sept. 6, I profiled the top three tech stocks under my models that were trading between $5 and $10: Interwoven (IWOV Quote), which has fallen 2.7%; Micromuse(MUSE Quote), up 13.2%; and RealNetworks(RNWK Quote), up 5.6%.

On Sept. 7, I shared with readers the best-screened tech stocks trading between $3 and $5; Lucent graduated to that category on Aug. 24. Since then, Lucent is up 2.2%, Intellisync(SYNC Quote) is up 9.6%, and Terayon Communication Systems ( TERN Quote) is up 14.7%.

On Sept. 21, I decided to open shelves in the Tech Five & Dime by industry group, stocking up on office and computer equipment and computer manufacturers and electronic devices. Tellabs (TLAB Quote) is already up 10.7%. On Sept. 23, I added a software company shelf.

In October, I plan to stock the shelves with low-priced semiconductor and computer-related companies.

Taking Inventory
Company Name	Date Posted	Price at Close	Price on 9/30/2005	% Gain/Loss	Under Valued	Weekly Chart	Value Level	Pivot	Risky Level
Stocks Between $1 and $3
Actuate	8/22/2005	$2.38		6.30%	56.80%	Pos	2.14 Q		3.17 Q
Lucent	8/22/2005	$2.87	$3.25	13.24%	55.00%	Pos	2.62 M		4.47 Q
Ciena	8/22/2005	$2.11	$2.64	25.12%	75.00%	Pos	2.13 Q
Stocks Between $5 and $10
Interwoven	9/6/2005	$8.40	$8.17	-2.74%	75.00%	Pos	7.63 Q		10.17 Q
Micromuse	9/6/2005	$6.96	$7.88	13.22%	56.20%	Pos	7.00 M
RealNetworks	9/6/2005	$5.41	$5.71	5.55%	29.40%	Pos	5.07 Q
Stocks Between $3 and $5
Lucent	9/7/2005	$3.18	$3.25	2.20%	55.00%	Pos	2.62 M
Intellisync	9/7/2005	$4.05	$4.44	9.63%	55.80%	Pos	4.03 M	4.64 M	10.36 A
Terayon	9/7/2005	$3.40	$3.90	14.71%	29.40%	Pos	3.45 M	4.16 Q
Office & Computer Equipment
Ditech Comm (DITC:Nasdaq)	9/21/2005	$6.79	$6.74	-0.74%	39.10%	Neg	4.25 M		11.75 S
Tellabs	9/21/2005	$9.50	$10.52	10.74%	34.30%	Pos	8.15 M	10.37 M	11.11 Q
Tut Systems (TUTS:Nasdaq)	9/21/2005	$3.10	$3.25	4.84%	75.00%	Neg	2.62 M	3.61 M	4.68 S
Westell Tech (WSTL:Nasdaq)	9/21/2005	$3.64	$3.64	0.00%	36.10%	OS	3.50 Q		5.69 S
Computer Makers & Electronics
Gateway (GTW:NYSE)	9/21/2005	$2.60	$2.70	3.85%	74.90%	Neg	2.23 M	2.80 Q	5.47 Q
SunMicro (SUNW:Nasdaq)	9/21/2005	$3.94	$3.93	-0.25%	24.20%	Pos	3.66 Q		5.14 Q
SkyWorks (SWKS:Nasdaq)	9/21/2005	$6.84	$7.02	2.63%	60.10%	Neg	6.07 M	7.74 Q	10.53 Q
Entrust (ENTU:Nasdaq)	9/21/2005	$5.51	$5.60	1.63%	0.40%	Neg	3.76 Q	5.44 M	6.17 M
Sotware Companies
BEA Systems (BEAS:Nasdaq)	9/23/2005	$8.43	$8.99	6.64%	47.20%	Neu	8.40 Q	9.28 W
Sapient (SAPE:Nasdaq)	9/23/2005	$6.37	$6.25	-1.88%	45.60%	OS	5.70 W	6.71 M	9.97 Q
WebMethods (WEBM:Nasdaq)	9/23/2005	$6.45	$7.07	9.61%	36.30%	OB	6.38 Q	7.17 W
Source: Global Market Consultants

Managing Risk/Reward

On Aug. 22, I wrote that Actuate was 62.9% undervalued and showed a monthly value level of $2.20. This price held on weakness Aug. 29. The shares are currently 62% undervalued. My quarterly value level at $2.14 should hold on weakness, and the upside is to my quarterly risky level at $3.17.

Lucent is 55.0% undervalued vs. 73.4% on Aug. 22. My monthly value level of $2.62 should hold on weakness, and the upside is to my quarterly risky level at $4.47.

Ciena has been weak since Aug. 22, but it held my monthly value level for August at $2.16. The stock remains 75% undervalued. My quarterly value level is $2.13, and I don't have a risky level at this time.