The 10 Worst Networking And Electronics Stocks of 2010

It is been a fairly type year to stock investors, with the S&ampP exhibiting a 12.8% gain in 2010. Of course, kindness may possibly nonetheless feel relative right after a lost decade of damaging returns that included the nauseating depths and panic of the economic crisis.

Nonetheless, not every single stock sees gains when a rising tide lifts all boats. Here’s a list of this year’s ten worst performers in the networking and electronics industries, ignoring firms that have gone bankrupt or sunk under million in marketplace capitalization.

When I compiled a list of the ten ideal carrying out stocks from these two industries in 2010, smaller networking companies dominated. That came largely at the expense of sector kingpin Cisco, which has struggled to compete in several essential niches of networking engineering. Cisco itself not only was unable to broaden in a number of of these development markets, but also saw its share value lag the industry by 28%. Provided Cisco’s inability to carry out better in crucial markets and competitors pushing into networking that could use toeholds in important technologies, I proposed that 2011 could see a buyout swell in the market.

One business whose name is continually swirling in buyout talks, but has but to be scooped up, is Brocade Communications. The company has significant item portfolios not only in switches, but also in storage area network products. Nonetheless, in spite of shopping itself, the firm has been unable to discover a buyer. Throughout the year, it also experienced numerous setbacks, which includes weak guidance final quarter, which led to a 31% falloff in its share price through 2010.

The electronics side saw a veritable grab bag of organizations underperforming. The most significant loser in the business, China Security and Surveillance, suffered along with fellow Chinesesmall-cap peers. Itron posted record profits in 2010, but like EnerNOC and other organizations generating wise electrical energy merchandise, it saw investors lose faith in the sector. Finally, Wise Modular Technologies just lately collapsed right after reporting poor guidance of its personal last quarter.

So what’s in store for networking subsequent year? I suspect we’ll see a string of buyouts. Although companies like F5 Networks and Riverbed may well be a tiny as well richly priced to attract a bidding war, there’s lots of other little fish in the sea to be stalked by networking aspirant HP, as properly as Cisco and Juniper.

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