Taking stock of the best technology stocks for 2009 can become a nightmare for any stock picker. Quarter reports and annual profit growth are only the tip of the iceberg of a variety of reasons to choose a technology stock. However, keeping apprehensions aside, finger’s crossed, and a disclaimer pertaining to the recessionary tendencies, here are the top 15 technology stocks along with favor and against reasoning.

1. Ilumnia: pioneer in genetic research.

Favor: High end research, and a new unsaturated market

Against: None, not yet

2. Google: most used search engine on earth.

Favor: Market leader and continuous innovations keeps it ahead of the rest of the pack
Against: New market players with Web 2.0 technology pose extreme challenge

3. iRobot: robots for military, households.

Favor: Unsaturated markets, better technology than the peers.
Against: Reduced defense budgets, it being the core of its sales.

4. Techwell: semiconductors for security sector, automotive sector

Favor: strong sales philosophy
Against: recessionary cuts in security, automotive sectors

5. Cbeyond: IP based communications and telephony

Favor: fresh market, strong research and development
Against: limited growth due to low IP penetration.

6. Cognizant Technology Solutions: IT, health services, financial services, support Software

Favor: unique business model of shifting all work to low cost destinations, implying Cost reductions
Against: feeling the heat of recessionary activity

7. Gilead Sciences: drugs for respiratory diseases, antiviral, cardiovascular drugs.

Favor: services high cost medicine markets, strong marketing policy.
Against: None, people fall sick all the time.

8. Vasco Data Security International: e-verification, user authentication solutions

Favor: Strong technical team, good research and development.
Against: several other companies are doing the same thing, needs constant innovation to

Remain at the top floor.

9. Red Hat: open source solutions in server technologies.

Favor: open source, allow large scale community development.
Against: disintegrated sales philosophy

10. Apple: online multi-media sales, digital music players, personal computers.

Favor: constant innovation and a catch of market trends
Against: None, after recession strong rebound activity expected

The Highlight of the above list is Cognizant Technology Solutions. Though at the sixth Place, being an IT major, it has shown solid growth trajectory since 2003. Apple, Redhat,Google are the regular ones. Illumna and iRobot were the surprise entrants. In difficult Economic conditions it is commendable. Picking a technology stock is hit by several factors due to the irregular market dynamics. Also in a new global order of Merger and Acquisitions it is important to watch the fate of the company in its new alliance. Also, recession has brought budget cuts in technology spending. Therefore emerging technology companies with newer, fresher, and unsaturated markets are the safest bets. Though bold, these new tech launches have brought back investor confidence in technology stocks after a long duration. Growth trajectory of these companies are not affected much due to recession owing to the fact that, the customers are still willing to pay for their innovative services. Investing in the emerging tech launches will be a prudent decision.

Though is simple, winning money in the stock market is not so easy. It requires a thorough knowledge and monitoring over the market. An investor should get through serious investigation and research of the company whose shares they were planning to buy. The trend and rhythm of the economy should be analyzed in detail. Also keep an eye on the general performance of the market. On failing these one can never reach the heights where an investor dreams to reach. It is on negligence of these basic steps, people say that they have lost so much of money in the stock market. This does not mean that there is no risk attached to investing in stock market. Definitely there is risk involved. But if you are cautious, you can at least save something out of your losses.

An intelligent thought and decision making power is most required for the investors who want to invest in the stock market. The current market fluctuation especially calls for a wise and quick action than the knowledge of the basic principle that risk is directly proportional to return. If you can gather some information on financial aspects, then you could furnish yourself with the necessary essence of the stock market. For this internet can do a lot of help. Just search in the search engine for related articles on stock market. You may get a variety of informative articles by many experienced authors. One thing to take care is regarding the submission date of the article. Do not be misled by the outdated information.

A continuous and daily based monitoring is very much essential if you are investing in stock market and have a desire to win money. It is also suggested to keep a written record or a digital record of certain stocks so that you can do a detailed analysis before taking an action. Now the TV channel plays a great role in showing the latest updates in the market with a clear overview. This makes it easy for the common public to know what was unknown.

Without a proper calculation and analysis, there is no shortcut to win money in the stock market. It is wise to have a border line as to when you should sell the share and when you should hold so that things get better in the coming days. When you have no idea at all as when to move, you may also seek an opinion of a professional who can guide you in the first few transactions. Do not worry; you will be trading all alone very soon. This is a very exciting activity that has much of the thrill involved. All that you should remember is not to carried away by the emotions when things go negative. Trading is always a sportive activity.

Have a positive attitude set in you before you make your first transaction in the stock market. This drives in the positive energy in you to look forward for success in what you do.

The global stock markets rest on the stability of the US Stock market to a very large extent. Today, when countries are gripped by recession, their quivering economies pose a threat to the US stock exchange crash. Now, how would recession be threatening to any of the US stock exchanges and how would it crash the world economy?

Recession:

When the growth of the Gross Domestic Product(GDP) of a country declines for more than two consecutive quarters of a year, then this decline is called ‘Recession’.

Reasons for Recession:

1. Once the economy reaches the brim of a normal economic cycle, it tends to slow down its growth. Generally, the   economy can grow for about six to ten years and then declines into a recession for about six months to two years.
2. When the consumers losses their confidence in the growth of economy, they spend less which leads to less money circulation and generation.
3. The demand for goods and services are thus decreased which in turn reduces the production rate and so happens the lay-offs and a direct inclines of the unemployment graph.
4. The investors are hesitant to invest money into shares, lest the stock values might fall.
5. Lesser money falling in leads to a negative fall in the stock market.

Recession and Stock Market:

The stock market and the economy go hand in hand. The stock market reflects the resilience of the economy. Since most of countries depend on US for their export demands, US fiscal stimulus is thus directly proportionate to the world economic stability graph.

The drastic down-fall of the stock prices worldwide over two trading sessions alone has left the investors haunted by the evil recession.

Though recession has not been formally declared by the BEA (Bureau of Economic Analysis) in the US, however, the investors fear the consequences. Today, the sensex crashed by 13% which leaves the investors worried. If we take the world financial map, India is the hardest hit nation with sensex falling by 7.4% record. Hong and China, the two major stock indexes also fell substantially, leaving them with the only survival option of accepting higher losses from the write-downs of US securities.

US- The Export Leader:

US which makes up most of the export demands for the different nations, now projects a large problem for them which has resulted from the decreased US consumer spending.

The Asian economies are more concerned about inflation in their own countries. This leaves them with a safety measure of buying government securities. European nations were also badly hit. Especially, the insurance agencies, where the investors feared that the insurers would go into default owing of debt that has already been written off.

European and Asian banks owns large quantities of securities based on US subprime debt which are already written off . The investors are now concerned that more debts will be written off as US markets continues to deflate.

Measures:

1. First remedy will be to cut down the taxes.
2. Increase the spending substantially in order to create more job opportunities.
3. Shoot up the manufacturing processes.
4. Service sectors should boost their businesses so as to prop up the economy.

On closely studying the world stock markets, it seems that there is a higher risk of recession in US having overwhelming impact on the export- led nations, which are greatly dependent on US consumer demand. Like we have seen in the past that the Federal Reserve Board(FRB) will cut further interest rates in view to overcome recession which would lead to depreciation of the US exchange rate which in turn would denominate the Asian assets in dollars.

Thus this symbolizes the inadequacy of the fiscal stimulus of the world economy.

Technology and its augmentation have made everything available online these days. All non residents can trade online in today’s cyber world. Most of the registered brokers offer online trading facility. These have certain prerequisites that make it possible for non residents to trade online. The people who wish to begin online trading should be prepared with these:

A bank account with a Portfolio Investment Scheme (PIS) Designated Bank (DB). This account is mandatory for all people who are non residents. Thus Indians living in America can invest in Indian companies based on repatriation or non repatriation with respect to shares and debentures which are sold or purchased through registered broker.

Demat / DMAT account or dematerialized account is a conventional bank account which deals with purchase and sale of shares unlike conventional accounts dealing with money transactions. This account can be opened with the help of a Depository Participant (DP).

A broking or trading account has to be opened with the stock brokers. This would enable the buying and selling of shares through them.These accounts need certain documents to be submitted before being opened. First and foremost non residents require Reserve Bank’s permission to invest in the secondary market. The permission is granted only with a PIS account with DB. The account can be either NRE where benefits of repatriation on investing can be enjoyed or NRO account where no benefits on repatriation on investing are extended. Two accounts, a PIS and a non PIS account has to be opened. All investments and sales would be conducted through PIS account which needs to be funded in advance so that broker is able to carry on with investments. The non PIS account is similar to a savings banks non resident account. NRO accounts would include transactions like IPO payments, dividend payments etc. Once the RBI permission is granted after the successful opening of PIS account the broker proceeds to open a DEMAT and broking account.

Once the various accounts have been opened the trading process and transactions can begin. The buy and sell orders can be placed on the Broker’s trade page. The trading system used b y most brokers are user friendly thus ensuring easy service. The funds have to be moved into PIS account by the investor to activate ‘buy’ order. The movement transaction would take less than a minute only. Similarly there is a need for shares in your DMAT account for initiating a ‘sell’ transaction. The shares bought will be credited to your account on the second working day after the transaction and will be available for trading again from the third day.

The sale is settled by the NSE on the second day and the proceeds are forwarded by the second day from the date of sale. The broker wires the money to PIS account on the second day. The money of the proceeds after deduction of Calculation Gains and tax deductions are credited to PIS account. The account statements can be checked and verified in the broker’s trading website.