As our world continues to become more and more tech-oriented, our demand for products ranging from smartphones, to semiconductors, to software and apps continues to rise. This makes investing in companies operating in the sector potentially quite lucrative, given their ongoing growth potential. This is especially true of smaller companies which traditionally have cheaper share prices as well. With this in mind, we have uncovered a list of five cheap tech stocks that have earned the biggest vote of confidence from the pool of money managers that we track here at Insider Monkey. We’ll discuss these five stocks below, all of which are priced at under $10 per share, affording investors the chance to diversify their portfolios on the cheap.
Our research determined that following the small-cap stocks that hedge funds are collectively bullish on can help a smaller investor beat the S&P 500 by around 95 basis points per month (see more details here).
#5 Intralinks Holdings Inc (NYSE:IL)
– Investors with Long Positions (as of December 31): 25
– Aggregate Value of Investors’ Holdings (as of December 31): $140.13 Million
Collectively, hedgies in our database held about 26.5% of Intralinks’ outstanding float at the end of December. Though the number of hedge funds bullish on the New York-based provider of Software-as-a-Service (SaaS) solutions dropped by one during the October-to-December period, the aggregate value of their investments rose by 11%, mostly on the back of a 9.4% gain in the stock during the period. In its financial results for the fourth quarter Intralinks Holdings Inc (NYSE:IL) delivered EPS of $0.02, which missed estimates by $0.01, while quarterly revenue of $71.28 million was $0.87 million above expectations and marked an increase of 6% year-over-year. In addition, the company significantly increased its guidance for fiscal year 2016 and also initiated a $20 million stock repurchase program. Peter S. Park‘s Park West Asset Management hiked its Intralinks Holdings Inc (NYSE:IL) position by 29% to 2.64 million shares during the fourth quarter.
#4 Nokia Corporation (ADR) (NYSE:NOK)
– Investors with Long Positions (as of December 31): 26
– Aggregate Value of Investors’ Holdings (as of December 31): $462.10 Million
Nokia’s stock gained back some ground in the fourth quarter, rising by 3.5%, though it’s still down by 14% over the past year. During the quarter, the number of investors in our database long the stock rose by two, while the aggregate value of their holdings inched up by 2.6%. Nokia Corporation (ADR) (NYSE:NOK)’s stock came under fire in February when a patent dispute with Samsung fell short of the payoff that analysts expected. The Finnish telecom company is hurrying to complete its acquisition of Alcatel-Lucent, with it currently owning about 87.33% of the French company’s shares on a fully diluted basis. Spencer M. Waxman‘s Shannon River Fund Management upped its stake in Nokia Corporation (ADR) (NYSE:NOK) by 124% to 2.8 million shares during the fourth quarter.