Magazine article Black Enterprise

Built to Last

Magazine article Black Enterprise

Built to Last

Article excerpt

Rodney Smith's tech infrastructure plays have staying power

Like the Energizer bunny, tech-related stocks just keep going and going ... or is it growing? According to Rodney Smith, a research analyst at Wall Street Strategies, an independent stock market research company in New York, the tech sector is still a hot commodity where infrastructure plays are concerned. These companies make components, products, and systems that add to a company's computer networks.

That said, "I let fundamental analysis drive the research process. I mean chiefly revenue growth ... second are earnings, and third are profit margins," says Smith, 34, who has been with the African American-owned firm for more than a year.

Smith selects stocks based on how they size up against peers. "The market moves in waves, so you want to be in the areas of the market that are really growing," he says. Smith asserts that stocks on the Nasdaq composite index were oversold; it went from roughly 5,300 to 2,300 over a 52-week range ended in late January. Therefore, "[Nasdaq stocks] were due for a bounce. But I'm not just looking for a bounce, I'm looking for stocks with sustainability that have good fundamentals."

INRANGE Technologies Corp. (Nasdaq: INRG), in Mount Laurel, New Jersey, makes fiber optic channel switches that connect corporate networks to data storage devices. "The company went public last year, and has been profitable; their earnings could ramp up in 2001 because of the growth," Smith says. …

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