Pro: Top Technology Tips Include Industry Juggernauts And Struggling Fitbit
Paul Meeks of Sloy, Dahl & Holst was a guest on CNBC's "Squawk Box" to offer his top tech investment ideas both big and small.
Fitbit Isn't Dead
Among the smaller-cap tech picks, Meeks is attracted to the fitness tracker and wearable company Fitbit Inc (NYSE: FIT) despite the stock's dreadful 66 percent loss over the past year.
While Meeks believes Fitbit is a "turnaround" story, the stock is also attractive just north of $5 per share given the fact that the company holds around $3.50 per share in cash, zero debt on the balance sheet and a potential downside to just $5 per share. As such, if the company were to "ever doing anything right" then the stock could double in value.
The Big Names
Among the other ultra-large cap names, Meeks said he turned more positive on Apple Inc. (NASDAQ: AAPL) after the stock has "flattened-out," which gave him a chance to buy shares.
Meeks also talked about one of the hottest topics among tech investors: cloud companies. He said there are some days when it is impossible to buy shares of a cloud provider because they are too expensive and as such investors should always be buying on pullbacks.
IBM Isn't A Tech Company
Meeks argued that IBM has no business calling itself a technology company given its alarming streak of shrinking its revenue every quarter for five years. He also believes that IBM's shift to a new-age technology company will take years.
"This is a 70's, 80's, 90's story and maybe for the 3 percent dividend yield you buy it, but this is a value stock — I don't think I would even consider it a technology company anymore," he said.
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