TheStreet.com Ratings: Seven to Own in '07

4. Because locating people and objects via global positioning systems is becoming more popular, we selected A-rated Trimble Navigation ( TRMB Quote). The company is a GPS service provider, primarily to commercial and government customers. It is also a market leader in construction, surveying, agricultural guidance and asset and fleet management. To further expand its suite of services and capabilities, Trimble recently agreed to acquire @Road( ARDI Quote) for $496 million, or $7.50 a share, in a cash and stock deal. The company expects the acquisition to add to its earnings by fiscal year 2008.

Three months ago, Trimble signed a deal to cross-license with Nokia, adding GPS technology to mobile phones. We also like its strong worldwide presence -- nearly half of its revenue comes from outside North America -- and its strong revenue and operating income growth, which have been trending upward for years.

5. To much fanfare, software giant Microsoft (MSFT Quote) will be launching Vista, yet another operating system that will spur worldwide demand for related software. That's one of the reasons we chose Adobe Systems ( ADBE Quote).

The company has a C rating, but this is attributed to a difficult integration of its Macromedia acquisition, which has affected the company's financial performance. However, we believe that earnings will improve this year and that the company will benefit from the Vista launch as well as the continued proliferation of mobile graphic applications.

Its popular Creative Suite application software, used by professionals for Web design and publishing, will release version 3 in the coming months. It's the first update to this major product in more than two years and the first time that Creative Suite will work seamlessly with Intel-based Apple(AAPL Quote) computers.

This should also be a big year for software providers as businesses and consumers upgrade to Microsoft's Vista. As this operating-system-induced upgrade cycle rolls out, Adobe's customers will also upgrade other software, including the essential PDF file applications -- all of which should show up on the bottom line by year-end.

But forget looking at the short-term technical charts; this one is only suitable for longer-term investors.