Audio Interview: Darrell Brookstein - Nanotech Investing
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Wall Street Reporter Idea of the Day: 7 Stocks for the Coming Bull Move in Nanotech
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April 9, 2008 - IDEA OF THE DAY
SMART MONEY INTERVIEWS - IDEA OF THE DAY
7 Stocks for the Coming Bull Move in Nanotech
Darrell Brookstein; Nanotech Company, LLCDarrell Brookstein, founder of the Nanotech Company, LLC, has correctly been bearish on nanotech stock prices for years now, but when the nanotech index hit a 5 year low recently he began searching for values. Darrell tells us that 140 of the Fortune 500 companies have announced nanotech initiatives and nanotech assisted products accounted for over $1 trillion in sales of last year.
While a five year low does not mean an instant turnaround, Darrell believes that in a "Boom Bust" sector like Nanotech we could see a short-term (2 weeks - 2 months) rally from the following companies. Darrell recommends using tight stops to protect capital:Analog Devices [NYSE:ADI] $30 down from $40 - Known for High performance signal processing. They do lots of work in MEMS (Microelectromechanical systems). The January low of $26.16 is an important long-term stop-loss
Altera Corp. [NASDAQ:ALTR] $19 down from $25 - Makers of integrated circuits and other "Nano-semi's". Darrell says long-term traders should consider a stop-loss at $16.12, the recent January low.
Xilinx [NASDAQ:XLNX] $23 up from 20 recently - Darrell recommended this stock at $21.80 and thinks current levels provide an excellent opportunity for a short-term move.
Bentley Pharma [NYSE:BNT] $14 up from $8 - This stock has seen a nice run, but Darrell feels it may go to the mid $15 range. And boy was he right! Just days after our interview, Bentley caught a $360 million bid from TEVA.
Formfactor [NASDAQ:FORM] $19 down from $48 - Known for testing the circuitry of semiconductor wafers without destroying them, a large problem right now. A recent lowering of Q1 guidance will undoubtedly put the stock price under some pressure.
MTS Systems [NASDAQ:MTSC] $23 down from $48 - They are involved with testing of bio-medical devices and also automotive testing products. Their sensor division sells to many types of manufacturing facilities all over the world.
Cabot Microelectronics [NASDAQ:CCMP] $32 down from $46 - Specializes in the polishing of wafers, a very necessary process in semiconductor production. Cabot trades with a foreword P/E of 15 and a PEG ratio of 0.86.


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