intel

Technology stocks are always risky, and the computer chip business is highly volatile. We feel the best way to cut the risk in computer chip investing is to focus on industry leaders that can afford to invest large amounts of money in the development of new products — like these four technology stocks. As well, all four technology stocks are attractive in relation to their earnings and sales. INTEL CORP. $22 (Nasdaq symbol INTC; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 5.7 billion; Market cap: $125.4 billion; WSSF Rating: Above average) is a leader among technology stocks. Intel is the world’s largest maker of computer chips, and controls roughly 80% of the global market. Intel currently spends about 16% of its revenue of $6.75 a share on research. This spending has led to several highly profitable products in the past few years. A good example is its multi-core processor chips, which let computers perform several tasks simultaneously....

ANHEUSER-BUSCH COMPANIES INC. $67.11, New York symbol BUD, has accepted a $70.00-a-share all-cash takeover offer from Belgian brewer InBev NV. The stock is trading for roughly 4% below the offer, which indicates that investors feel a higher bid is unlikely. InBev aims to complete the takeover by the end of this year. Anheuser-Busch stockholders should hang on to their shares, and tender them to get the full $70.00 without paying brokerage fees. WELLS FARGO & CO. $27.86, New York symbol WFC, jumped 30% this week after it reported second-quarter earnings that exceeded consensus forecasts of $0.50 a share. In the three months ended June 30, 2008, earnings per share fell 20.9%, to $0.53 from $0.67 a year earlier. Most of the drop was due to higher loan loss provisions and writedowns. Revenue increased 16.2%, to $11.5 billion from $9.9 billion, thanks to strong gains at its retail banking, credit card and wealth management businesses. The company also raised its quarterly dividend by 9.7%, from $0.31 a share to $0.34. The new annual rate of $1.36 yields 4.9%....

NASDAQ-100 TRUST SHARES $45 (Nasdaq Exchange symbol QQQQ; buy or sell through brokers) or ‘Qubes’, hold the stocks that represent the Nasdaq 100 Index. This index is made up of the 100 largest and most heavily traded stocks on the Nasdaq exchange. The index reflects firms across major industry groups including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology. It does not contain financial companies. Expenses are about 0.20% of assets. The top 10 highest-weighted stocks are Apple, Microsoft, Qualcomm, Google, Cisco, Intel, Research in Motion, Gilead Sciences, Oracle and Celgene. Nasdaq-100 Trust Shares are a buy for aggressive investors only.

We still think high-quality mutual funds with a long-term focus will beat indexes over long periods. If funds invest as we advise — sticking with well-established companies and spreading their assets out across the five main economic sectors — they will tend to lose a lot less than the market indexes in periods when the indexes fall sharply. That’s because big market slides are particularly hard on the hottest, most popular stocks of the preceding market rise, and investing as we do leads you to avoid excessive investment in the hot stocks. Index funds, in contrast, do tend to load up on the hottest, most popular stocks as they rise. That’s because, as they rise, these stocks make up a rising proportion of the index. The most recent example is Potash Corporation of Saskatchewan., which now has the highest market cap on the Toronto exchange on the strength of soaring fertilizer and agriculture prices....

INTEL CORP. $23 (Nasdaq symbol INTC; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 5.7 billion; Market cap: $131.1 billion; WSSF Rating: Above average) has agreed to merge its solar-power technology into a new joint venture called SpectraWatt Inc. This new company will make photovoltaic cells from silicon. These cells are the primary component used in making solar panels that use sunlight to generate electricity. SpectraWatt will focus on new ways to improve existing industry manufacturing methods. The partners plan to build a new plant in Oregon later this year, and begin production in mid-2009. Intel is a buy.

FIDELITY FOCUS TECHNOLOGY FUND $8.81 (CWA Rating: Aggressive) invests mainly in technology companies. The fund’s investments include computer services, computer software and systems, communications systems, electronics, office equipment, scientific instruments and computer chips. The fund looks for stocks that have strong earnings growth and appear undervalued. Fidelity Focus Technology Fund’s top holdings now include Cisco Systems, Nintendo, Apple Computer, Nokia, Qualcomm, Google, Hewlett-Packard, Intel, Oracle Corporation and Microsoft....

Here are three Fidelity funds that hold much of their portfolios in one specific sector. We generally advise against investing in funds that concentrate in one economic sector. For example, a fund concentrating in financial services is particularly vulnerable to any setbacks in that sector, or to interest-rate rises. However, all of these Fidelity funds stick with high-quality stocks. If you do invest in these funds, be sure to adjust the rest of your portfolio so these funds won’t overly concentrate your holdings in any one sector. FIDELITY FOCUS CONSUMER INDUSTRIES FUND $17.03 (CWA Rating: Aggressive) (Fidelity Investments Canada, 483 Bay St., Suite 200, Toronto, Ont. M5G 2N7. 1-800-263-4077; Web site: www.fidelity.ca. Load fund — available from brokers) invests mainly in U.S. consumer goods and services companies. Consumer spending is a key part of the U.S. economy, accounting for approximately two-thirds of activity....

TD SCIENCE & TECHNOLOGY FUND $13.49 (CWA Rating: Aggressive) (TD Asset Management, P.O. Box 7500, Station A, Toronto, Ontario. M5W1P9. 1-800-386-375 7; Web site: www.tdcanadatrust.com. No load — deal directly with TD) invests mostly in U.S. firms engaged in the research, development and production of products or services related to science and technology. TD Science & Technology’s top holdings include: Microsoft Corporation, Google, Cisco Systems, Hewlett-Packard, American Tower, Qualcomm, IBM, Corning Inc., Nintendo Co., Oracle Corp., Samsung Electronics, Nokia, Intel and Apple Inc. The fund’s loss in Canadian dollars over the last year was 15.8%. The Nasdaq index lost 16.1% in Canadian funds. The $90.5 million fund’s manager is well-respected U.S. mutual fund manager T. Rowe Price Associates. Its MER is 2.70%....

ALTAMIRA SCIENCE & TECHNOLOGY FUND $8.13 (CWA Rating: Aggressive) (Altamira Investment Services, The Exchange Tower, 130 King St. West, Suite 900, Toronto, Ont. M5X 1K9. 1-800-263-2824; Web site: www.altamira.com. No load — deal directly with the company) invests in the telecommunications, biotechnology, environmental technology, health care and computer industries. Top holdings are Apple, Microsoft, Yahoo!, Nokia, Intel, Microchip Technology, Google, Research in Motion and Cisco Systems. The $52.5 million fund lost 7.2% in Canadian dollars over the last year. The Nasdaq index lost 16.1% in Canadian funds. The fund’s MER is 2.70%....

Many tech stocks are down from the highs they reached late last year. That’s when the Nasdaq composite index reached 2,862, its highest level since early 2001. Consumer spending for computers and electronics in the United States has slowed, along with overall lower consumer confidence, due in part to higher gasoline prices and volatile housing markets. Many U.S. corporations are also slowing spending on information technology until the economy recovers. However, many U.S. technology companies continue to expand sales in international markets, and the high value of foreign currencies against the U.S. dollar is boosting foreign profit contributions....