On the other hand, she's bullish on the longer-term outlook for technology. Tsang says all stocks in the sector are still vulnerable to first quarter earnings disappointments and the prospect of lowered guidance for 2001. That poor revenue visibility makes picking short-term winners hard, she says. However, looking through the correction, Tsang especially likes the looks of the software and storage sectors and thinks that because of fewer inventory problems those areas will rebound sooner. She offers StockHouse readers a look at some of her favorites.
Siebel software designs Internet applications to manage customer relationships and sales forces.
These days the stock is not quite so hot. The semiconductor business is a cyclical one, and Tsang considers this the time to give it a look. Taiwan Semiconductor runs a foundry where it makes semiconductors for a variety of computer companies, taking advantage of trends towards outsourcing. They're a very efficient and a well-run company. The stock has dropped to levels Tsang finds attractive.