Bank of America Shares Could Double

What is your favorite sector?

Villalta: We really like large technology companies, like IBM(IBM), Intel(INTC), EMC(EMC), Microsoft and Dell(DELL).

As we emerge from the current recession, we believe corporate spending on technology will move forward for two reasons. No. 1, draconian cost cutting has curtailed any discretionary spending that would have gone to technology upgrades. In short, aging equipment will start to force upgrades at many corporations, as discretionary spending becomes necessary spending.

No. 2, technology has tended to offer a method to improve productivity, while containing headcount. As we emerge from the current environment, companies will likely look to such measures to grow while limiting new hires.

What sector or stock would you avoid?

Villalta: We are underweight health care. Not only is pending legislation an issue, but as many of the companies weathered the past two years better than other sectors, we see less than appealing return potential. We have a couple of pharmaceutical holdings in our portfolio at present, which we feel strongly about, but we are not enthusiastic about the broad sector.

-- Reported by Gregg Greenberg in New York.

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