Tap into the tech boom with less risk

Article Excerpt

Chipmakers and software firms operate in highly competitive, fast-changing fields. To cut your risk, we recommend sticking with industry leaders who have built up strong reputations with their customers. These firms also have the financial strength to absorb the high cost of developing new products. Here are three tech companies that are leaders in their niche markets. Sales and earnings at all three are rising, but we see only two as buys at today’s prices. ADOBE SYSTEMS INC. $28 (Nasdaq symbol ADBE; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 490.9 million; Market cap: $13.7 billion; Price-to-sales ratio: 3.4; No dividends paid since June 2005; TSINetwork Rating: Average; www.adobe.com) makes software that lets computer users create, edit and share documents in the popular PDF format. As well, graphic designers use Adobe’s software to create print publications and web pages. The company also makes Adobe Flash, which lets web site developers add animation and video. In its third quarter, which ended September 2, 2011,…