Forbes on FOX

Recap of Saturday, July 6:Caremark RX ; ARM Holdings

Our panelists give you the scoop on all the inside business information before you hear it anywhere else in The Informer segment:

David Asman: Mike, a break in the clouds concerning tech stocks?

Mike Ozanian, senior editor: Cognex (CGNX) & Advanced Systems (AEIS) are two tech stocks we think are going to rebound next year. Short sellers are going to come in and take advantage of this.

Leigh Gallagher, staff writer: Doesn't this have to happen fairly quickly? Isn't timing critical with this?

Mike Ozanian, senior editor: That's true but these two companies are going to have strong rebounds and earnings growth next year.

David Asman: And Bruce, another break for tech stocks possible?

Bruce Upbin, senior editor: Storage companies like EMC Corp (EMC), Hewlett-Packard (HWP) and IBM (IBM) will benefit from the problems associated with emails. Cops have discovered e-mail as this wonderful investigative tool. Companies, especially banks and brokerage firms have to store their emails. The governor of Germany has asked all companies to do so, maybe the U.S. will follow suit.

David Asman: Luisa, Pfizer (PFE) has been beat up in the last few weeks.

Luisa Kroll, associate editor: Yes, it's been beaten up badly. First of all it's been trading at 48 times trailing earnings last year. Now it's down to about 25 times. I think it's a good time though. They're finally able to unload their sweets and razors. And they just announced a $10 billion stock buy-out. This is showing more confidence on their part.

David Asman: Okay, Leigh Gallagher we've got Target. Everybody loves Target right?

Leigh Gallagher: Target is worth a look. Right now it's down about 20% since March. It's at the fore front of retail direct licensing. Instead of buying clothes from manufactures and paying the 35% markup price, it's actually licensing the name, paying 1% royalty and keeping all the profits.

Bruce Upbin: I think the stock is too pricey. I think they should drop their chains; they're growing a lot slower.

Makers & Breakers

Caremark RX (CMX)

Nik Mittal, Baker Street Capital Mgmt.: MAKER

Caremark Rx is the leading prescription benefits company. At 70 percent it has the industry's highest percentage of corporate clients.

Jim Michaels, editorial vice president: BREAKER

This company is a sitting duck because all the politicians are going after medical services companies like Caremark Rx. They also just lost a huge corporate account. And there's been a lot of insider selling.

Luisa Kroll, associate editor: MAKER

I like this stock. I think you'll do well no matter what. It's got 95 percent client retention rate.

ARM Holdings (ARMHY)

Nik Mittal, Baker Street Capital Mgmt.: MAKER

ARM Holdings is based in London and they license their software across industries. They have nice cash on their balance sheet. Their revenues and EPS have trended upward.

Luisa Kroll: BREAKER

This company has actually been down 30 percent for deferred revenues for the first quarter. This is a company in a very volatile sector. I'd hold off on this one.

Jim Michaels: BREAKER

I'd leave this one alone for now too. I think it's at the bottom of the fishbowl.

Nik Mittal, Baker Street Capital Mgmt.: Well right now ARM is at 25 times next year's EPS and that's relatively inexpensive for a leading growth stock. It looks poised for a rebound.