10 Hot Techs That Aren't Apple or Google

Breaking Out Corporate Checkbooks

A lot more of the top prospects this year are focused on the broadband communication build-out from different angles. Some, such as newcomer Ikanos Communications(IKAN Quote), are probably overcooked and have limited potential.

But others, such as high-end network operator Broadwing(BWNG Quote), optical-laser components maker JDSU(JDSU Quote) and the jack-of-all-digital chipmaker Broadcom(BRCM Quote), could advance 50% or much more as their customers -- telecom carriers and equipment makers -- break out their checkbooks to upgrade and get more competitive.

If you want to look for some upside in a cheap tech stock on the move, check out Cray(CRAY Quote), the nation's leading supercomputer maker. The company -- which has disappointed optimists repeatedly in the past -- last week lifted its revenue estimates for 2005 and 2006 by as much as 32% because of new commitments by customers on three continents, including the Korea Meteorological Administration, the Swiss National Supercomputing Center and our very own Oak Ridge Labs. Earnings will follow, and the company is likely to emerge from a string of annual losses by 2007.

The problem is that supercomputing is not exactly a growth industry, and at home it is held hostage to a Pentagon budget that's straining just to turn on the lights. If you buy now, you might have to wait a while for action, but there's $46 million in cash that acts as a safety net, and the upside could approach $2.50 to $4 in two years, or as much as a double or better from here. The recent range is wide: It sold for 85 cents a share a few months ago and as much as $14 in 2003.

Everybody loves a long shot, so here is another back-from-the-dead, low-tech tech stock showing promise: microcap RELM Wireless(RWC Quote). It makes two-way wireless radio systems for the homeland security and military market under the Uniden, BK Radio (formerly known as Bendix) and RELM brand names.

Between 2003 and midsummer, shares consolidated at $2 to $3, but a set of big orders from four federal agencies and California foresters got people talking, and shares have tripled to a new all-time high of $9.35. I love new highs. The big change is a new federal standard for digital radios that allowed RELM to compete for more business, and some innovation on the factory floor that allows it to provide better quality and lower prices than rivals.