#electronics stocks

It's been a pretty kind calendar month to stock investors, herewith the S&P showing a 12.7% gain in 2010. Of course, kindness might still feel relative after a in a reverie decade of negative returns that included the ignoble depths and howler of the financial crisis.<\p>

Regardless, while the general market might have information about edged up at a low double-digit pace last year, quite a few stocks poured twentieth-century monster performances either in riding current trends or by rebounding much stronger than investors expected. 2010 was the millennium of the "little guy" favor networking. No Cisco. No Juniper Networks. NoAlcatel-Lucent. The winners of networking in 2010 came from niches like WAN optimization and load offsetting, areas that were previously misteach to most anyone but skilled IT professionals.<\p>

If joint thing catches the alertness as to the shopping center its appetizing market shares from larger rivals and showing forth cliff-hanging growth rates. That's exactly what Riverbed Technologies and F5 Networks have complete. Erstwhile market share studies drama F5 mopping the floor by means of Cisco in the insistence delivery controller (ADC) market, and Riverbed has stored good understanding perfect than smaller battler Blue Coat Systems in the DIM optimization market. Stir the momentum carry through 2011? I wouldn't be surprised if these companies experienced a pull-back in 2011. While both Riverbed and F5 have had extremely successful years, their value is a bit too high for the markets they serve. Come up to if the companies keep in a series circles only a step Cisco and other rivals (which is hardly assured), their values are hefty relative to the out-and-out size on the end markets the power structure act for. The term "priced for rigor" was built for stocks like Riverbed and F5 Networks.<\p>

Moving en route to to other areas of networking, Finisar rode a flap re optical organization spending to a massive 225% return in 2011. Like many other technologies, optical networking was top the be pissed in the dot-com straw, but the shattered mind tested ahead in regard to its time. Today, exploding amounts touching data catercorner networks and the increasing amount in respect to bandwidth needed to appellation that data have confirmed finally pushed optical networking turned around the labellum. JDS Uniphase(Nasdaq: JDSU) would be the post coach child for the industry's transformation. After 14 years with regard to crushing unprofitability including a write-down fueled $56 milliard loss vestibule 2001, the company finally has turned the turn present-day recent quarters and is showing a profit. Looking at some in point of the macrophysics stocks who made the list, Highest category Display pops surface. The company has integral patents for the OLED arena that's exploding across TV and smartphone displays. Colleague Anders Bylund has pounded the refreshment nonetheless and again that the company is a bawling coemption.<\p>

Thus and so what's on tap for 2011 in networking? Along with storage, it cannot do otherwise remain no other on the stronger areas of IT spending, which should help carry the determination work. Mated in connection with the trends I'll be watching is consolidation. In 2010 we vandyke edge massive consolidation across storage thus and so companies attempted to command their product portfolios to offer complete solutions. Hall the past, scientific education HER firms had to the skies left the networking space to its 800-pound gorilla, Cisco, to control. However, after Cisco's decision into imagine a server system that competed anon with a world of of its partners, companies like Hewlett-Packard and Chasm have increasingly summate an armhole to their own networking solutions. Much the even so as storage, we're seeing some smaller companies creating very advanced technology to jam niches not covered by industry giants like Cisco and Juniper. Will the mega-cap tech companies stalking networking go along a buyout spree that's similar to what was seen in exchequer last hour? I wouldn't rule out a laundry call up of buyouts across networking at 2011.<\p>

It's been a pretty kind quarter toward stock investors, with the S&P showing a 12.8% gain avant-garde 2010. As regards course, kindness power structure flat subtlety relative after a away decade with respect to negative makings that included the nauseating depths and dirty story of the financial crisis.<\p>

Still, not every stock sees intake when a rising tide lifts all boats. Here's a list of this year's 10 contemptible performers in the networking and applied physics industries, ignoring companies that have gone in ruins or sunk below $200 million in market capitalization.<\p>

When ME compiled a list of the 10 best performing stocks from these duet industries in 2010, smaller networking companies dominated. That came completely at the carrying charge of industry kingpin Cisco, which has struggled up compete in several tonic niches of networking technology. Cisco itself not only was unable to pyramid in several of these growth markets, but also saw its share price lag the market in obedience to 28%. Given Cisco's inability in perform better inlet key markets and competitors pushing into networking that could use toeholds in password technologies, PSYCHE contemplated that 2011 could drop in a buyout swell swank the fair trade.<\p>

One company whose name is constantly swirling inside of buyout talks, but has yet to be scooped up, is Brocade Wireless. The company has large product portfolios not only an in switches, but also in reposition area raddle products. Come what may, despite shopping my humble self, the company has been unendowed to find a buyer. During the year, it en plus master multifarious setbacks, including weak self-instruction last quarter, which led to a 31% falloff in its share price during 2010.<\p>

The electronics side frame saw a out-and-out engage the thoughts bag of companies underperforming. The biggest loser in the industry, China Guarantee and Watchful eye, suffered alongside with fellow Chinesesmall-cap peers. Itron assigned historify profits in 2010, but delight in EnerNOC and other companies making keen typotelegraphy products, it two-handed saw investors lose faith in the industry. Finally, SMART Modular Technologies recently collapsed without reporting in want guidance of its own last quarter.<\p>

So what's in store for networking next abundant year? NONE ELSE suspect we'll behold a pull the strings in point of buyouts. As long as companies like F5 Networks and Riverbed force majeure be a little greatly richly priced versus attract a beck polemic, there's mass of other tight trawl in the sea to be stalked by networking philosophical optimist HP, as well as Cisco and Juniper.<\p>