Timberline Software, Teradyne, Conexant, Internet stocks

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A selection of some of the most intriguing tech stock ideas on the Web. The items presented do not represent the views of

TheStreet.com

; rather, the collection is offered as a service to our members who may be scanning the Web for stock-related information.

Timberline Software

Richard Geist

(1/4)

A correction is in the cards for the large-cap stocks, maintains Richard Geist of

Richard Geist's Strategic Investing

, and that will signal a chance for the micro- and small-cap stocks to shine. In particular, he likes

Timberline Software

(TMBS)

, a financially strong provider of proprietary project management and accounting software for the construction and property management industries.

Despite intense competition, Timberline dominates by staying ahead of the technology curve and offering new products at a fast pace, says Geist.

Financially, the company has been strong and growing for a few years. Net income for the first nine months of 1998 increased 77% over the year-ago period to $4.5 million. Revenue was up 26% to $30.9 million during the same period. Analysts forecast a 21% increase in earnings per share for all of 1999 to $1.17. "Given the consistency of this company's growth, we think there is a good potential for Timberline to continue to reward investors in the coming years," Geist says. He rates the stock a buy at its current price of 15 7/8.

More information can be found at:

www.investools.com

Teradyne

Online Investor

(1/5)

Semiconductor-testing-equipment maker

Teradyne

(TER) - Get Report

followed the market in 1998, getting hammered in the late-summer selloff but rebounding later to show a 132% gain for the year. The stock trailed only

America Online

(AOL)

on the

New York Stock Exchange's

list of biggest winners in the fourth quarter. The question for Teradyne and other chip-equipment makers, says

Online Investor

, is whether "there is any good news left for these stocks to anticipate."

On the optimistic side, the company still is profitable despite the Asian crisis because big chip makers must continually retool to produce ever-faster chips for a variety of devices. Teradyne gets 45% of its revenues from mixed-signal chips, which are used in a variety of wireless devices and make up one of the fastest-growing parts of the business. Teradyne has a competitive lead in this area as well as in logic chips, another key segment.

Last month,

SG Cowen

initiated coverage of the stock with a "strong buy" rating and a target price of 60. The stock trades currently at 48. Nine of 10 analysts covering the stock rate it at least a "buy." Teradyne may not be a sexy stock, but "it does offer a behind-the-scenes, diversified way to participate in the general explosion of electronics, from computers to communications," says

Online Investor

.

More information can be found at:

fnews.yahoo.com

Conexant

Upside.com

(1/7)

New kid on the public company block

Conexant

(CNXT) - Get Report

, a maker of modems, is in the midst of a transition. The spinoff of

Rockwell International

(ROK) - Get Report

is trying to diversify from PC modems, which made up 80% of its business as recently as 1996. Modems will be down to a 40% portion this year. The new plan is for growth in the communications chip sector, providing chips for wireless devices, network access devices, cable modems, set-top boxes, satellites, digital cameras and printers, says

Upside.com

.

Conexant hopes big competitors such as

Lucent

(LU)

and

Texas Instruments

(TXN) - Get Report

will be distracted by other concerns. In the meantime, the company plans to grow via acquisitions.

Revenue for the company grew from $200 million in 1995 to the current $600 million. Profitability is less than a year away, says chief executive Dwight Decker. In the meantime, management is taking a 10% cut in pay until the company delivers two consecutive quarters of profitability, and no one in the company will take home any bonus until the stock price rises 50% its Jan. 14 opening price of 17.13 a share. Executives won't get their full bonuses until the rise tops 100%. It'll be a while. The stock was just above 15 late this week.

More information can be found at:

www.upside.com

Internet Stocks

Steve Harmon

(1/6)

Internet stocks seemed manic in 1998, but while some stocks are overvalued, Internet analyst Steve Harmon doesn't write off the whole segment as a bubble waiting to burst. "As the industry continues to permeate every aspect of consumer and commercial life, Wall Street should reflect that robust growth," he says.

In 1999, there will be opportunities in some not-so-glamorous businesses: "new ways of e-mail management, more targeted marketing and advertising, industrial-strength services, smarter e-tail and e-commerce," he says. This outlook, plus a good dose of experience from the last five years, produces Harmon's Top 10 list of stocks to watch in 1999. But "watching means watching," he says. "What you do with your money is your decision," he cautions.

The ten:

@Home

(ATHM) - Get Report

,

America Online

(AOL)

,

Beyond.com

(BYND) - Get Report

,

Broadcom

(BRCM)

,

CMGI

(CMGI)

,

DoubleClick

(DCLK)

,

Go2Net

(GNET)

,

Preview Travel

(PTVL)

and ShopperConnection sites, a group of some of the big names in Internet retailing.

More information can be found at:

www.internetnews.com