Top Tech Stocks To Own For 2017

By Avi Lavi, David Dalgas

When equity investors chase what's hot, it often ends in tears. Today, the safety trades that have been so popular earlier this year are actually looking quite dangerous.

We've seen this film before. There are countless examples throughout modern market history of investors following crowds into performance fads and getting crushed on the way down. From the Japanese stock market crisis in 1992 to the technology bubble in 2000 to the US housing crash in 2007, market manias are often seductive.

These days, investors in global stocks are eager to combat volatility and protect against downturns. The quest for a smoother ride has led many to increase allocations to passive portfolios exposed to certain risk characteristics-or factors-which are seen as relatively safe. Less volatile stocks, as characterized by their lower beta, and stocks that offer higher-dividend yield have been especially popular.

Recent trends may be signaling that a reversal is imminent. For example, low-beta stocks outperformed the market in the first half of 2016, but underperformed in the third quarter (Display). Similarly, returns from the highest group of dividend-payers were especially strong in the first quarter but have lost steam since then.

Top Tech Stocks To Own For 2017: Clean Energy Fuels Corp.(CLNE)

Advisors' Opinion:

• [By Lisa Levin]

  In trading on Wednesday, energy shares fell by 1.72 percent. Meanwhile, top losers in the sector included Clean Energy Fuels Corp (NASDAQ: CLNE), down 5 percent, and Frontline Ltd. (NYSE: FRO), down 7 percent.

• [By Michael Vodicka]

  Clean Energy Fuels Corp. (CLNE) designs, builds and operates natural gas filling stations in the United States. The company supplies compressed natural gas (CNG) and liquefied natural gas (LNG), serving a fleet of 650 customers, more than 32,000 natural-gas vehicles while owning or supplying more than 350 filling stations in 32 states.

Top Tech Stocks To Own For 2017: Dunkin' Brands Group, Inc.(DNKN)

Advisors' Opinion:

• [By Ben Levisohn]

  Keurig��s plight (actually, JAB��s) is worsening, with the K-cup market slowing to almost no growth now, and Keurig continuing to lose own brands�� share. Starbucks (SBUX) echoed the notion of a K-cup market slowdown at its seminar on Wednesday (and is guiding for its [consumer packaged goods, or CPG,] growth below recent trends), but it expects to increase its share of total CPG coffee to 20% from 15%. Come early February it will be a year since the closing of the Keurig deal for JAB Holdings. The pressure on JAB is more significant if we take into account the high leverage of the deal (JAB contributed one fourth of the $12Bn price tag). It is a tough predicament. On the one hand we argue that to make that deal work, they need to buy more (��own��) brands either from the retail channel (that can be extended to CPG: Dunkin (DNKN)? Panera (PNRA)?), or outright buy CPG brands (like the entire Kraft Heinz portfolio, and or Tata Group��s Eight O��Clock brand). But can/how do they fund these deals? Maybe Mars and Warren Buffett (Mars is involved in office coffee with Starbucks), private equity, and or 3G can help? While this note is not about Positive-rated Mondelez, we have mentioned before a scenario where Kraft Heinz buys Mondelez and partly funds the deal by selling its own CPG coffee business (~$3Bn we say) to JAB as well as divests the Mondelez ��20% plus�� stakes in Keurig (North America) and Jacobs Douwe Egberts (Western Europe), which together at this stage are worth ~$7-8Bn. But, yes, JAB will need deep-pocket partners and generous lenders. Net, JAB needs to do something soon.

• [By Michael Flannelly]

  On Thursday, Dunkin Brands Group Inc (DNKN) announced that it has signed an agreement with two franchise groups to begin developing 50 Dunkin’ Donuts restaurants in the United Kingdom.

  Dunkin Brands has signed an agreement with The Court Group to begin developing 25 Dunkin’ Donuts stores in East London. The other agreement was with franchise group DDMG Ltd., which calls for the development of 25 Dunkin’ Donuts stores in North London over the next five years.

  Furthermore, Dunkin Brands noted that it is in talks with additional franchise partners to help develop over 150 Dunkin’ Donuts restaurants in the U.K. over the next five years, including the two agreements mentioned above.

  “We feel there is significant opportunity for Dunkin’ Donuts in the UK, and we have had a tremendous response from potential franchisees interested in developing the brand across the country,” said Giorgio Minardi, President, Dunkin’ Brands International. “We are especially excited to begin the expansion of Dunkin’ Donuts into the UK with The Court Group and DDMG Ltd., two experienced franchisees who have a deep passion for the brand and a solid understanding of the local market. We look forward to working with them to make Dunkin’ Donuts’ high-quality beverages, baked goods and sandwiches part of the way of life in the UK.”

  Dunkin Brands shares were inactive during pre-market trading on Thursday. The stock is up 31.89% year-to-date.

• [By WALLSTCHEATSHEET.COM]

  Dunkin�� Brands provides delicious items that fulfill the sweet cravings of many consumers. The company is hoping to cash in on the European recovery as it plans to expand heavily in Germany. The stock has been exploding higher since its IPO and is now trading at all-time high prices. Over the last four quarters, earnings and revenues have been rising which has pleased investors in the company. Relative to its peers and sector, Dunkin’ Brands has been a year-to-date performance leader. Look for Dunkin’ Brands to OUTPERFORM.

Top Tech Stocks To Own For 2017: Monolithic Power Systems, Inc.(MPWR)

Advisors' Opinion:

• [By Lee Jackson]

  Monolithic Power Systems Inc. (NASDAQ: MPWR) has a diverse market that includes communications, gaming and computing to continue to drive its growth, all markets that will pay a premium for its technology. The list of tech companies that use its chips is impressive. Deutsche Bank has a $30 target, the same as the consensus target.