Canaccord's two consumer stock picks added to this update
BOSTON (TheStreet) -- Salesforce.com (CRM) and Qualcomm (QCOM) are the technology stocks to buy for 2012, Canaccord Genuity analysts say, while Netflix (NFLX) and Research In Motion (RIMM) are to be avoided.
Canaccord Genuity, the capital-markets division of investment bank Canaccord Financial, was founded in Canada as a venture-capital firm in 1950, and has since expanded operations into the U.S., the U.K., China and Australia. The firm's wealth management unit had more than $14 billion (Canadian) in assets under administration as of Sept. 30.
SemiconductorsCanaccord's Picks: Analog Devices (ADI), which makes digital signal processing integrated circuits , and Integrated Device Technology (IDTI), which makes a range of semiconductor products. Analyst Bobby Burleson says that, entering 2012, investors need to understand how constrained PC growth could be because of an inventory correction, lackluster end demand, and the disk drive shortage following the floods in Thailand. "While we remain concerned about near-term softness in PCs and communications and acknowledge the potential for another number cut, we believe the worst cuts are behind us," Burleson writes. "Heading into 2012, we like names with broad-end market exposure and low PC exposure." Burleson picks Analog Devices because of the potential for more dividend increases. As a bonus, the company has virtually no PC exposure, he says. Similarly, Integrated Device also has limited PC exposure and Burleson expects the company gross margins to rebound in 2012 as the company completes its transition to a fabless model.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV