5 Risky Tech Stock Bets

No. 3 Verizon(VZ)

The situation. Verizon has gotten no respect this year; it even lags rival AT&T(T) in its dismal appraisal on Wall Street. Verizon shares are down 17% so far this year, significantly lower than Ma Bell's 12% swoon.

The bear case. Verizon can be summed up in rather bleak terms: High costs, heavy debts and stagnant growth. Verizon has $61.5 billion in total debt, representing about 57% of the company's $107.6 billion estimated annual revenue. It's not exactly Greece, which has a debt level equal to 115% of the nation's gross domestic product. But it is higher than the U.S. where debt is 53% of GDP. And with Verizon's .5% estimated sales growth in 2010, the burden isn't exactly getting lighter.

The bull case. Verizon has been making adjustments. Earlier this year, the company stopped expansion of FiOS, its expensive fiber optic network construction intended to compete with cable companies in video, phone and Net service bundles. And now analysts at Telecom Pragmatics say Verizon is getting more cash conscious on its 4G wireless plans. According to the research shop, Verizon is considering full 4G in large cities and an upgraded 3G in outlying areas. The move would keep Verizon in the lead in 4G while sparing billions in network construction costs to areas with limited return on investment.