(MSFT) - (HPQ) - Charles Carlson, DRIP Investor newsletter

Charles Carlson, editor of the DRIP Investor newsletter, says there’s no denying that a number of tech stocks offer decent values. Find out what this featured expert has to say about renewed interest in large-cap stocks and the move to technology stocks. Then take a look at two profiles of companies that Carlson refers to as stand-out opportunities. The Last Word from October 27 Underlying this move to 12,000 in the Dow are some significant shifts in the market. One of those shifts is renewed interest in large-cap stocks. Charles Carlson expected this to happen this year given that large-cap stocks were especially cheap relative to small-cap stocks. Another shift is a move to technology stocks. Now Carlson knows he has never been a big bull on tech stocks. Quite frankly, it’s hard for him to get a handle on the business models of tech companies. Still, there’s no denying that a number of tech stocks offer decent values. Furthermore, Carlson thinks capital spending on technology will surprise people in 2007. And the move back into large-cap stocks should help some of the biggest tech companies. Of course, saying the time is ripe for a rebound in technology is one thing; choosing those stocks likely to benefit is quite another. To that end, four tech stocks stand out as opportunities for DRIP investors. Two of those stocks are profiled below. Two Tech Opportunities: Microsoft (MSFT) recently moved to a 52-week high, an encouraging sign for a stock that has been fairly dormant for the last few years. New products in 2007 should help revenue growth. Strong finances and continued earnings growth should fuel additional dividend growth. Microsoft’s direct-purchase program permits initial purchases directly with a minimum $1,000. However, the firm will waive the minimum if an investor agrees to automatic monthly investment via electronic debit of a bank account of at least $50. Hewlett-Packard (HPQ) recently captured the top spot in the world for PC shipments in the third quarter. The company has a lot of operating momentum, which should translate into healthy earnings gains. While the stock has given a good account of itself over the last 12 months, these shares still trade at a reasonable valuation of less than 16 times consensus fiscal 2007 earnings estimate of $2.47 per share. The stock is a buy at current prices. Hewlett-Packard’s dividend reinvestment plan requires ownership of at least 10 shares in order to enroll in the plan. If you buy the initial shares from a broker, make sure you get the stock registered in your own name, not the “street” name. Expect to pay the broker an additional fee to have the stock registered in your own name. Minimum optional cash investment in the plan is $50. This article highlights the commentary of Charles B. Carlson for the Zacks.com audience. Charles B. Carlson provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "DRIP Investor" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "DRIP Investor" and 30-Day Free Trial. And get immediate access to current issues and special reports. Click here now. Here’s How You Can Profit from the Pros Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. Just sign up for our free email newsletter, Profit from the Pros, where we’ll give you the commentary, advice, and insight from those rare few experts who consistently beat the market year in, year out. | Blog Home| VitalStocks Home