As the dust settles on Apple's (AAPL) bombshell of a quarter the question must be asked: Why bother with a technology investment strategy other than "Buy Apple on Dips"?
To help find an answer Breakout welcomed David Garrity, Principal of GVA Research. Even while enjoying the afterglow of Apple, Garrity had other tech ideas on his mind. Here they are, submitted for your approval:
Microsoft (MSFT): Mom always said "if you can't say something nice about someone don't say anything at all." Or at least someone's mom supposedly said it, but it wasn't mine. Garrity likes Microsoft, offering that the company's alliance with Nokia (NOK) and the Facebook/ Skype relationship show a company "fighting to maintain its relevance." Microsoft has lost that fight.
EBay (EBAY): On the upside eBay convinced Microsoft to overpay for Skype. This would be an investment thesis were eBay a corporate leper or, even better, a starfish capable of getting Microsoft to overpay for its detachable parts until eBay was nothing but the torso of an online auction site. Alas, this is not the case.
Intel (INTC): See "Microsoft"
Google (GOOG): Now we're talking! Garrity sees Android as an important platform from which the company may finally be able to come up with a major new division. With one of the Russian kids from Stanford who founded Google is back in charge the company is "starting to fire on more cylinders other than paid search," according to Garrity. The stock has been marking time, waiting for Google to do just that. They generate cash like a counterfeiter on speed, giving Google years to prove itself more capable of finding a next act than Microsoft. Works for me.
As for his dark side wish-list, Garrity starts to salivate when asked about Groupon soon coming public. He simply can't wait to short it, perhaps as a paired trade with a Google long. Watch the video to figure out why and to hear from the horse's mouth why he likes Google and the three companies I just assailed. As always, let us know what you think in the space below.