Tech stocks took a few hits in January as some leading names announced weaker than expected earnings. But Patrick Lyons, an equity portfolio manager with NCM Capital Management Group Inc. in Durham,
North Carolina (No. 7 on the BE ASSET MANAGERS list with $2.4 billion under management), maintains a positive outlook. He notes that through the end of January, the Nasdaq composite index has climbed more than 20% since July.A 12-year veteran with NCM Capital, Lyons says that despite the upswing, some of technology’s biggest names are still bargains. As a chartered market technician, he focuses on analyzing stock performance charts to identify patterns that may signal future growth. Specifically, he looks for dominant players in their industries that sport annual earnings growth of at least 10% and strong cash flows. Lyons’ stock
picks meet those benchmarks and have compelling stories as well. “Some are preparing to unveil new versions of popular products,” he says, “while others are fundamentally changing direction in promising ways.”