This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

3 Tech Picks As Bearishness Rises

Stocks in this article: BBRY MU ORCL

CHRIS LAU, KAPITALL: An increase in short-selling volume for companies also indicates a rise in bearishness. Between March 28 2013 and April 15, short interest rose for a number of widely-followed companies listed in the table below. [Related:  5 Bullish Calls in Technology From Jim Cramer]

Screen shot 2013-05-08 at 12.02.05 PM  

Since the share prices of these companies are all up since mid-April, is the contrarian move to be bullish on them instead?

Bears continued to be relentless in short-selling Blackberry (BBRY)¸but the company is on track with its transition to Blackberry 10. The U.S. Department of Defense (“DOD”) approved the use of BB10 smartphones, as well as Blackberry’s Playbook. Bears pointed to the DoD also signing off in allowing for the use of Apple and Samsung devices. They failed to recognize that the DoD will likely use the Blackberry Mobile Device Management solution in managing these devices.

Blackberry also launched its flagship keyboard-based Q10 model, a device that will ensure upgrades from its core fans. Financial firm RBC thinks Blackberry will sell 2.75 million units in the May quarter. This is an upgrade from a previous forecast of 2 million.

Oracle (ORCL) bearishness rose by 33% as short interest increased to 42.37 million shares. Gartner estimated that corporate reliance for SAP implementation was just 41%. 59% of the software implementation for SAP was for Microsoft’s (MSFT) SQL Server and other database solutions. Oracle showered investors with earnings growth quarter after quarter, but risks will always remain. Sybase, DB2, and MySQL are compelling alternatives to the expensive Oracle backend solution.

Fast-growing company Salesforce.com ( CRM) released Social.com to help companies manage ad campaigns in the social media space. This could increase the competitive pressure for Oracle.

In the chip space, Micron Technology (MU) is close to yearly highs, up 87% from its yearly low. Helped by rising chip prices, Micron reported strong quarterly results, but is attracting bearish investors. The company announced a PCI-Express flash module that would help the company expand sales in the enterprise.

Negativity for chip companies may continue to rise. In the last month, SanDisk (SNDK), Qualcomm (QCOM) and OCZ (OCZ) traded lower, as Micron tested new highs. By April 15, 2013, short interest for SanDisk rose 16% to 9.36 million shares.

Written by  Chris Lau

null

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • 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 Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs