Top 10 Tech Stocks To Buy For 2014

Buyouts can be one of the quickest ways for investors to score a big profit.

Buyout companies are almost always purchased at a premium that can give shareholders a nice pop. And with the S&P 500 sitting on record cash and looking for ways to grow, the average buyout premium is at an all-time high.

According to Dealogic, 2012's average buyout premium of 25% was up from 23% in 2011 and the highest premium since 2001. That huge average premium included the buyout of Baton Rouge, La.-based energy construction company Shaw Group, which was bought for $46 a share, a 72% premium to its $27 share price. It also included Bristol-Myers Squibb (NYSE: BMY) paying $26 a share to buy biotech company Inhibitex, a huge 163% premium that ranked as the richest deal of the year.

Top 10 Tech Stocks To Buy For 2014: P.T. Telekomunikasi Indonesia Tbk.(TLK)

Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk provides telecommunication and network services worldwide. The company?s Fixed Wireline segment offers local, domestic long-distance, international telephone services, and other telecommunications services, including leased lines, telex, transponder, satellite, and very small aperture terminal (VSAT), as well as ancillary services. Its Fixed Wireless segment provides local and domestic long-distance code division multiple access-based telephone services, as well as other telecommunication services within a local area code. Perusahaan Perseroan?s Cellular segment offers mobile cellular telecommunication services. Its network services comprise satellite transponder leasing, satellite broadcasting, VSAT, audio distribution, and terrestrial and satellite-based leased lines. The company?s data and Internet services include short messaging service for fixed wire line, fixed wireless, and cellular phones, dial-up and broadband Internet access, virtual private network (VPN) frame relay, Internet protocol (IP) VPN, voice over IP for international calls, integrated services digital network connections, and other multimedia services. The company also provides information services, such as billing, directory assistance, and content services; and wireless application protocol, Web portal, ring back tones, voicemail, and building management services. In addition, it offers consultancy services, as well as constructs and maintains telecommunications facilities; interconnection services; telephone directory production services; and cable and pay television services. As of December 31, 2010, the company served 120.5 million customers, including 8.3 million fixed wireline telephone subscribers, 18.2 million fixed wireless telephone subscribers, and 94.0 million cellular telephone subscribers. Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk was founded in 1884 and is headquartered in Bandung, Indonesia.

Advisors' Opinion:

• [By Richard Band]

  The mantra here is “free cash flow.” In recent years, Telkom Indonesia (NYSE: TLK), the dominant provider of both fixed-line and wireless communications in sprawling Indonesia, has poured huge sums into upgrading its networks. Now the company has the luxury of throttling back a bit.

  Starting in 2011, each sales dollar (rupiah, actually) will generate more profit — along with a surge of cash that can be distributed to shareholders. I predict, in fact, that Indonesia’s largest telco will boost its dividend more than 30% by 2013 (from a 2010 base). That’s the kind of growth you want in retirement! Current yield, based on my estimate of 2011 dividends, is 4.8%. Buy TLK up to $36.

Top 10 Tech Stocks To Buy For 2014: TranSwitch Corporation(TXCC)

Transwitch Corporation designs, develops, and supplies semiconductor and intellectual property solutions for voice, data, and video communications equipment. The company provides integrated multi-core network processor system-on-a-chip (SoC) and software solutions for fixed, 3G and 4G mobile, VoIP, and multimedia infrastructures. It offers converged network infrastructure products, including infrastructure VoIP processors comprising Entropia series of processors for wire-line and wireless carrier equipment; EoS/EoPDH mappers and framers for formats and data speeds in the access portion of the network; tributary switches that enable traffic to be switched or re-arranged; and carrier Ethernet solutions consisting of Ethernet controllers and switches, as well as circuit emulation and clock recovery devices. The company also provides FTTx protocol processors, such as mustang, a system-on-chip solution for EPON optical network unit equipment; COLT processor, a system-on-chip so lution for the optical line terminator equipment; and Diplomat-ONT product, an integrated SoC solution for GPON ONU applications, as well as access VoIP processors and access controllers. In addition, it offers broadband customer premises equipment, including multi-service communications processors comprising Atlanta processor, a multi-service SoC for customer premises equipment that supports toll-quality telephone voice, fax, and routing functionality; and HDMI, displayport, HDP, and Ethernet IP cores for consumer electronics, home network equipment, and industrial and automotive applications. The company serves public network systems OEMs, WAN and LAN equipment OEMs, Internet-oriented OEMs, and communications test and performance measurement equipment OEMs, as well as government, university, and private laboratories. It sells its products through direct sales force, independent distributors, and sales representatives. The company was founded in 1988 and is headquartered in Shelton, Connecticut.

Advisors' Opinion:

• [By Michael Brush]

  If you find yourself craving more high-definition video on your smartphone or tablet computer or if you've been checking out 3D televisions -- the next big trend -- you already know why TranSwitch (TXCC) stock should be a winner over the next few years.

  Once a techmania darling, trading at more than $500 a share, TranSwitch crashed and burned along with so many other Internet stocks. It has been all but left for dead since. Wall Street analysts are predicting the stock will actually have fallen to $2 a year from now, from recent levels of around $2.60, according to Thomson Reuters.

  What they're missing is that TranSwitch has revamped its chip offerings so they support high-definition video connections in TVs, PC and game monitors, smartphones, tablets and video cameras. This exposes the company to some big consumer trends. Another new product line supports gear that connects homes, offices and smartphones to the Internet.

  Those analysts and other investors don't put much faith in these new products. So why should you? Because the right kinds of insiders have been accumulating stock. Many of the new products are scheduled to hit the market over the next three months and generate meaningful sales by the fourth quarter. So now is the time to buy.

  Of course, we don't know for sure that TranSwitch's new products will catch on. But behind the scenes, they've been licensed by the likes of Intel (INTC), International Business Machines (IBM), Texas Instruments (TXN) and Analog Devices (ADI), Ted Chung, the TranSwitch vice president of global business development, tells me. That suggests TranSwitch may work its way into the Apple (AAPL) iGadget ecosystem, says Northland Capital Markets analyst Richard Shannon. That would be a game-changer for tiny TranSwitch, but the markets for its new products are so big that it probably can win even without such an advantage

Best Dividend Stocks For 2014: Extenway Solutions Inc. (EY.V)

Extenway Solutions Inc. provides media, connectivity, and communications solutions for the healthcare and hospitality industries primarily in Canada. It offers bedside infotainment terminal solutions that enhance the patient�s hospital experience by providing on demand access to entertainment, including digital TV, video-on-demand, music, Internet radio, Internet access, and video games, as well as educational content. The company also offers interactive TV and guest media solutions, which allow hospitality organizations to manage and coordinate all in-room guest interactions and communications, as well as deliver actionable guest insight for key service and marketing initiatives. In addition, it provides family video conferencing, patient education library, hospital information and administration, marketing, advertising media, integration, and maintenance solutions. The company was formerly known as Infomedia Research Group Inc. and changed its name to Extenway Solutions Inc. in October 2003. Extenway Solutions Inc. is headquartered in Baie-D'Urf茅, Canada.

Top 10 Tech Stocks To Buy For 2014: Vitesse Semiconductor Corporation(VTSS)

Vitesse Semiconductor Corporation engages in the design, development, manufacture, and marketing of semiconductor products to original equipment manufacturers (OEMs) of carrier and enterprise networking products, and data center infrastructure systems worldwide. It offers a line of Ethernet switching products consisting of carrier Ethernet switch engines for customer premise equipment, access network equipment, wireless base stations, mobile access equipment, fiber and microwave wireless backhaul equipment, and metro networking equipment; and Ethernet switches that enable desktop, workgroup, and LAN infrastructure. The company also provides Ethernet media access controllers that offer addressing and channel control mechanisms and are used in enterprise class modular Ethernet switch platforms, as well as in Ethernet-over-SONET/SDH and Ethernet-over-OTN systems used in access, metro, and long-haul carrier networking systems; Ethernet transceivers, including single, quad, and octal devices that allow the transmission of 10/100/1000 BASE-T data over category 5 copper cable and fiber optic cabling for use in personal computers, home electronics, and LAN applications; and Ethernet transceivers with packet timing and synchronization capabilities. In addition, it provides a line of connectivity products, which comprise mixed-signal physical media devices, physical layer devices, crosspoint switches, and signal integrity devices that are used for the connection of systems via optical fiber, copper cable, or backplanes. Further, the company offers a range of transport processing products, such as framers, mappers, and switches, which support data rates up to 10 Gbps for SONET/SDH, EoS, and OTN applications. It markets and sells its products directly to OEMs and original design manufacturers, as well as through third-party electronic component distributors and manufacturing service providers. The company was founded in 1984 and is headquartered in Camar illo, California.

Top 10 Tech Stocks To Buy For 2014: Fuel Tech Inc.(FTEK)

Fuel Tech, Inc. uses a suite of advanced technologies to provide boiler optimization, efficiency improvement, and air pollution reduction and control solutions to utility and industrial customers worldwide. It operates through two segments, Air Pollution Control Technologies and FUEL CHEM Technologies. The Air Pollution Control Technologies segment includes technologies, such as low and ultra low NOx Burners, over-fire air systems, NOxOUT and HERT selective non-catalytic reduction systems, and advanced selective catalytic reduction systems to reduce NOx emissions in flue gas from boilers, incinerators, furnaces, and other stationary combustion sources. This segment distributes its products through direct sales force and agents. The FUEL CHEM Technologies segment uses chemical processes in combination with advanced computational fluid dynamics and chemical kinetics modeling boiler modeling for the control of slagging, fouling, corrosion, opacity, and other sulfur trioxide-r elated issues in furnaces and boilers through the addition of chemicals into the furnace using Targeted In-Furnace Injection technology. This segment?s programs improve the efficiency, reliability, and environmental status of plants operating in the electric utility, industrial, pulp and paper, waste-to-energy, university, and district heating markets; and are installed on combustion units in North America, Europe, China, and India for treating various solid and liquid fuels, including coal, heavy oil, biomass, and municipal waste. It provides operational, financial, and environmental benefits to owners of boilers, furnaces, and other combustion units. The company was founded in 1987 and is headquartered in Warrenville, Illinois.

Advisors' Opinion:

• [By Carlson]

  Fuel Tech, Inc. is an integrated company that uses a range of advanced technologies to provide boiler optimization, improvement and air pollution reduction and control solutions to utility and industrial customers globally. Its EPS forecast for the current year is 0.23 and next year is 0.4. According to consensus estimates, its topline is expected to grow 21.56% current year and grow 20.26% next year. It is trading at a forward P/E of 22.11. Out of eight analysts covering the company, two are positive and have buy recommendations and six have hold ratings.

Top 10 Tech Stocks To Buy For 2014: Morningstar Inc.(MORN)

Morningstar, Inc., together with its subsidiaries, provides independent investment research to investors worldwide. The company operates in two segments, Investment Information and Investment Management. The Investment Information segment offers data, software, and research products and services for individual investors, financial advisors, and institutional clients. It provides Licensed Data, a set of investment data spanning various investment databases, including real-time pricing data available through electronic data feeds; Morningstar Advisor Workstation, a Web-based investment planning system; Morningstar.com, a membership service and Internet advertising space; Morningstar Direct, a Web-based institutional research platform; integrated Web tools to build customized Websites or enhance existing sites; Morningstar Principia, a CD-ROM-based investment research and planning software; Morningstar commodity data that provides data and analytics for the energy, financial, and agriculture sectors; equity and corporate credit research; and Morningstar structured credit ratings and research services. This segment also offers various financial communications materials, real-time data and desktop software, investment software, and investment indexes, as well as various print and online publications. The Investment Management segment offers various products and services, such as Investment Consulting that focuses on investment monitoring and asset allocation for funds of funds, including mutual funds and variable annuities; Retirement Solutions comprising the Morningstar Retirement Manager and Advice by Ibbotson platforms; and Morningstar Managed Portfolios, a asset management service includes series of mutual fund, exchange-traded fund, and stock portfolios. This segment serves banks, brokerage firms, insurance companies, mutual fund companies, and retirement plan sponsors and providers. Morningstar, Inc. was founded in 1984 and is headquartered in Chicago, Illinois.

Top 10 Tech Stocks To Buy For 2014: Nortech Systems Incorporated(NSYS)

Nortech Systems Incorporated operates as a contract manufacturing company. It manufactures wire harness cable and printed circuit board assemblies, electronic sub-assemblies, higher level assemblies, and complete devices. The company also provides value added services and technical support, including design, testing, prototyping, and supply chain management; and repair services on circuit boards used in machines in the medical industry. In addition, it engages in the design, manufacture, and post-production service of electronic and electromechanical medical devices for diagnostic, analytical, and other life-science applications. Nortech Systems Incorporated serves various industries that include aerospace and defense; medical; and the industrial markets, which include industrial equipment, transportation, vision, agriculture, and oil and gas. The company markets its products through sales force and independent manufacturers? representatives. Nortech Systems Incorporated was founded in 1981 and is headquartered in Wayzata, Minnesota.

Top 10 Tech Stocks To Buy For 2014: Gilead Sciences Inc.(GILD)

Gilead Sciences, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of therapeutics for the treatment of life threatening diseases worldwide. Its products include Atripla, Truvada, Viread, Emtriva for the treatment of human immunodeficiency virus infection in adults; Hepsera, an oral formulation for the treatment of chronic hepatitis B; AmBisome, a amphotericin B liposome injection to treat invasive fungal infections; Letairis, an endothelin receptor antagonist for the treatment of pulmonary arterial hypertension; Ranexa for the treatment of chronic angina; Vistide, an antiviral medication for the treatment of cytomegalovirus retinitis in patients with AIDS; and Cayston, an inhaled antibiotic used as a treatment to enhance respiratory systems. The company?s products also comprise Tamiflu, an oral antiviral for the treatment and prevention of influenza A and B; Macugen, an intravitreal injection for the treatment of neovascular a ge-related macular degeneration; and Lexiscan/Rapiscan, an injection used as a pharmacologic stress agent in radionuclide myocardial perfusion imaging. Its products under the Phase III clinical trials consist of Cobicistat, a pharmacoenhancer that is under evaluation as a boosting agent for HIV medicines; Elvitegravir, an oral integrase inhibitor being evaluated as part of combination therapy for HIV; Integrase Single-Tablet, a ?Quad? regimen of elvitegravir, cobicistat, tenofovir disoproxil fumarate, and emtricitabine for the treatment of HIV/AIDS in treatment-naive patients; and Aztreonam for inhalation solution for the treatment of cystic fibrosis patients with Pseudomonas aeruginosa. The company?s Phase II clinical trials products comprise Cicletanine, Ranolazine, and Aztreonam, as well as GS 9190, GS 9256, and GS 9451. Its Phase I clinical trial products include GS 7340, GS 5885, GS 6620, GS 9620, and GS 6624. The company was founded in 1987 and is headquartered in Fost er City, California.

Advisors' Opinion:

• [By Hilary Kramer]

  Gilead Sciences (NASDAQ:GILD) recently transformed itself by acquiring Pharmasset (NASDAQ:VRUS), which has developed a promising treatment for Hepatitis C called PSI-7977 and has scored a perfect cure rate in clinical testing. Hepatitis C is largely an untreated disease, and the market potential is huge. The acquisition will dilute Gilead’s earnings through 2014, but GILD will remain solidly profitably through its strong roster of drugs that treat HIV.

• [By TheStreet Staff]

   Gilead Sciences (GILD) hits a snag that delays the filing, approval or launch of its all-oral Hepatitis C drug regimen. Investors also wake up to the realization that the commercial market for Hep C drugs is far smaller than expected. Gilead shares close in the red for the year. This is my Black Swan prediction for 2013.

• [By Dennis Slothower]

  Gilead Sciences is one of the top picks for some investors. While it may not be one of the best green stocks to invest in, the ROE and profit margin make it one to buy.

Top 10 Tech Stocks To Buy For 2014: Digital River Inc.(DRIV)

Digital River, Inc. provides end-to-end global cloud-commerce and marketing solutions. The company offers a range of services that enables its customers to establish an online sales channel. Its services include design, development, and hosting of online stores and shopping carts; store merchandising and optimization; order management; denied parties screening; export controls and management; tax compliance and management; fraud management; digital product delivery via download; physical product fulfillment; subscription management; online marketing, including email marketing; management of affiliate programs; paid search programs; payment processing services; Web site optimization, Web analytics, and reporting; and CD production and delivery services. The company also provides paid search advertising, search engine optimization, affiliate marketing, store optimization, multi-variant testing, and Web analytic and e-mail optimization services. In addition, it offers a range of payment processing services, such as multiple payment methods, fraud management, tax management, cloud-based billing, and other payment optimization services. The company sells its products and services through Internet and direct sales force. It serves software, consumer electronics, and computer and video game product manufacturers, as well as online channel partners, including retailers and affiliates in the United States, Austria, Brazil, China, Germany, Korea, Ireland, Japan, Luxembourg, Mexico, Singapore, Sweden, Taiwan, and the United Kingdom. Digital River, Inc. was founded in 1994 and is headquartered in Minnetonka, Minnesota.

Top 10 Tech Stocks To Buy For 2014: TransAct Technologies Incorporated(TACT)

TransAct Technologies Incorporated designs, develops, assembles, markets, and services transaction and specialty printers. It offers thermal, inkjet, and impact printers to print various transaction records, such as receipts, tickets, coupons, register journals, and other documents. The company also provides various printing supplies and consumables, including inkjet cartridges, ribbons, receipt papers, and other transaction supplies, as well as replacement parts; maintenance, repair, and testing services; and refurbished printers. TransAct Technologies Incorporated sells its printers under the Epic, Ithaca, and Printrex brand names for applications primarily in the banking, POS, casino and gaming, lottery, oil and gas, and medical and mobile markets. The company sells its products to original equipment manufacturers, value-added resellers, and selected distributors, as well as directly and online to end-users in the Americas, Europe, the Middle East, Africa, Asia, Austral ia, the Caribbean Islands, and the south Pacific. The company was founded in 1996 and is headquartered in Hamden, Connecticut.