ARM Holdings PLC (ARMH-OTC)

A great company and a hero of the UK tech industry. They make power chips, largely for mobile devices, and are a great competitor for Intel (INTC-Q). Stock is off because of the weight of expectation. When growth stocks start to decelerate they always suffer because there is a transition in the shareholder base that goes from the hedge fund managers to growth managers to “growth at a reasonable price” managers. Stock has a long, long way to go before the value investors are going to be interested.

Well recognized brand. Global player but a lot of revenues are US. Hospitals, colleges’ food service and uniforms. Modest dividend that will grow over time.

Probably the current leader and has sort of taken over from Intel in the processor world, PC to tablet. A designer of chips, not a manufacturer.

Nice little trend. Built a base and then broke out with a gap. It is in a continuation pattern. Stop around $37.

Great company and has all the attributes that he loves, except that it is very expensive. This is a stock with a 40 or 50 multiple and about a 20% long-term growth rate. Has a PEG ratio over 2, which is when he starts to get nervous about a company. If you own, he would recommend selling.