10 Hot Techs That Aren't Apple or Google

According to Feltl & Co. analyst Richard Ryan, RELM has just 1% share of a domestic market worth $1.9 billion (and the global market is eight times larger), so there is plenty of room for growth. As the coal-mining tragedy in West Virginia showed earlier this month, and the events of Sept. 11, 2001, showed a few years ago, there is a big, big need for interoperable communications for first-responders. The opportunity is out there as long as management is up to the task.

Getting Cheaper, Growing Faster

So how about the larger, better-known stocks? The past two years have been all about compression, with P/E multiples shrinking even as earnings growth has expanded. That happens when investors don't think that growth is sustainable. Therefore, you need to find companies with P/Es that shrank in the recent past despite great growth, yet are on the cusp of expansion now as investors acquire comfort with their potential.

Two that fit this description are Akamai Technologies(AKAM) and ValueClick(VCLK).

Akamai makes equipment that speeds up the Internet and counts companies like Apple and FedEx among its clients. Its shares topped at $340 in 2000 and fell to 56 cents four years ago. At their current perch around $22 -- with a trailing P/E of 11 and P/E on the next 12 months' earnings of 32 -- the shares look pretty compelling. ValueClick offers advertisers a range of services and products to enable Web and email marketing. It's very profitable, sales are accelerating and its P/E multiple, down to 19 from over 75 a couple of years ago, is on the move as well, up to 34 on a forward basis. ValueClick shares are inches away from a new all-time high, so a move higher in anticipation of another solid earnings release on Feb. 20 would be a big confidence booster.

In summary, there's nothing wrong with Apple and Google -- but there might be a lot more to tech this year than white boxes and the search cult. Google was the last war. Here's a scorecard to help you keep track of my 10 soldiers for the tech battles of '06.

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

Tech Stocks: 10 With Potential
Company Name	Industry Name	Mkt Cap	1/13/06 Price	P/E
ValueClick (VCLK)	Ad Agencies	2 B	$20.64	19.5
Broadcom (BRCM)	Semiconductors	19.7 B	57.25	74.4
Akamai Technologies (AKAM)	Internet Software	3.4 B	22.80	11.3
PMC-Sierra (PMCS)	Semiconductors	1.7 B	9.55	79.6
ON Semiconductor (ONNN)	Semiconductors	1.7 B	6.94	-
JDS Uniphase (JDSU)	Comm. Equipment	4.9 B	2.96	-
Broadwing (BWNG)	Comm. Equipment	559 M	7.59	-
Seagate Technology (STX)	Data Storage Devices	11.6 B	24.23	13.2
Cray Inc. (CRAY)	Computers	158 M	1.79
RELM Wireless (RWC)	Wireless Equipment	122 M	9.33	13.5
Comparisons?
Google (GOOG)	Internet Services	137 B	466.25	103
Apple Computer (AAPL)	Computers	72 B	85.59	55
Morgan Stanley High-Tech Index (MSH.X)	N/A	N/A	552.73	N/A
Source: MSN Money

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