9 Famous Tech Stocks to Sell Now

Among the duds: Dell, RIM, Microsoft & Google

   
9 Famous Tech Stocks to Sell Now

It has been a wild ride for technology stocks in 2010. The tech-heavy Nasdaq composite index went on a tear from February to the end of April, tacking on about +18% in a little over two months. Then the index gave almost all of it back as the market hit its May swoon and tech stocks were caught in the downdraft.

So what’s next for tech? I, for one, am banking on a big surge for small-cap tech stocks as the recovery slowly takes hold across the rest of this year. But don’t think that means the entire sector is coming up roses. The fact is that the choppy stock market this year has made investors very picky and the breadth and power of technology stocks is thinning out.

That means some big-name tech stocks are in for a fall in the coming weeks. To help you steer clear of these duds, here’s my list of 9 famous tech blue chips to sell now:

Dell Inc. (DELL)

Market Cap: $23.5 billion

Dividend Yield: N/A

Dell Inc. (DELL) stock is down -20.7% since the beginning of May this year. The company employs more than 94,000 people and conducts its business on a global scale through its subsidiaries, yet shareholders must face the fact that growth estimates are coming in well below industry averages. With Dell’s operating margins expanding at a less than impressive rate, it may be time to part ways with this stock.

Electronic Arts Inc. (ERTS)

Market Cap: $4.9 billion

Dividend Yield: N/A

Electronic Arts (ERTS), manufacturer and developer of video game software available on gaming consoles such as PlayStation 3, Microsoft Xbox 360 and Nintendo Wii, has witnessed its shares slide -24% since May of this year. On top of that, revenue estimates this quarter are projected to be around -38% lower than this time last year, a trend that seems as if it may continue for the remainder of the year for ERTS stock.

Ericsson (ERIC)

Market Cap: $34.5 billion

Dividend Yield: 2.5%

Failing to live up to earnings estimates for two of the past four quarters, outlook seems poor for communications networks provider Ericsson (ERIC). Failing to make any significant gains this year, the ratings for Ericsson’s earnings growth and operating margins growth are contributing factors to the status of this stock as a sell.

Google Inc. (GOOG)

Market Cap: $148.9 billion

Dividend Yield: N/A

Search engine icon and online mainstay Google (GOOG) has found itself in a slump the past few months. Since April, the company’s stock is down -17.4%, following the same slope many of its industry competitors are facing as well. Google just made up with China in a bid to regain some of its clout in the communist nation, but the damage may already have been done in terms of market share and future performance.

McAfee Inc. (MFE)

Market Cap: $4.9 billion

Dividend Yield: N/A

This established security technology company saw both its Q1 returns and its net profit margins drop off from last year’s numbers. Headquartered in Santa Clara, California and employing more than 6,000 people, McAfee (MFE) has been facing a downward spiral in the market since April of this year, under-performing its earning estimates and posting more than -21% losses in that time period.

Microsoft Corp. (MSFT)

Market Cap: $212.7 billion

Dividend Yield: 2.1%

Software juggernaut Microsoft (MSFT) has fallen well below broader market averages in 2010. May and June have proved to be particularly difficult for investors, with MSFT returns trending downward almost -25% in that span. With new versions of Microsoft’s Windows and Office recently released, shareholders will be looking for strong performances form these offerings to help the stock rebound next quarter. But with business spending still fairly weak, chances are that Microsoft may not see as many buyers as its shareholders hope.

Nokia Corp. (ADR) (NOK)

Market Cap: $31.7 billion

Dividend Yield: 5.8%

Nokia (NOK) has made a name for itself globally as a player in the mobile devices and Internet and digital mapping services industry. While it has managed to keep its seat at the table in an industry with very high consumer demand, Nokia’s stock has been struggling all year. Since April, the company’s stock has yielded an unimpressive -43.5% return to shareholders. It may be time for shareholders to drop Nokia and look for another plan.

Qualcomm Inc. (QCOM)

Market Cap: $57 billion

Dividend Yield: 2.2%

Declining revenues and poor growth estimates forecasted for next quarter makes Qualcomm Inc. (QCOM) seem like a dark cloud that shareholders might not want to be caught under. A recent announcement of a quarterly dividend of 19 cents a share, payable Sept. 24, may not be able to erase the memory of the -28.3% loss experienced already in 2010.

Research In Motion Ltd. (RIMM)

Market Cap: $26.5 billion

Dividend Yield:

Research In Motion (RIMM) is yet another mobile communications stock that is struggling to find its legs in 2010. Perhaps best known for its BlackBerry smartphones, RIM has been consistently underperforming the broader markets so far with -21.7% returns year-to-date. The past few weeks have been a setback for RIM with a dip in returns that exceed the losses posted by the Dow Jones and Nasdaq. Though a smartphone innovator, RIM and its BlackBerry have become perennial second fiddles to the iPhone and emergent Android devices.

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Article printed from InvestorPlace Media, http://investorplace.com/2010/07/tech-stocks-to-sell-dell-google-microsoft/.

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