DAVE HARRIS: This is Dave On Stocks podcast # 31. I'm Dave Harris. This is for Tuesday January 16th 2007. I'm a long term investor handling a diversified portfolio of stocks. I think we have a lot of investor optimism in play and I like the enthusiasm over tech stocks lately. I'm referring mainly to the likes of Apple (symbol AAPL) and Google (GOOG). Here are 2 companies that have real control over the markets they dominate. First with Apple, the Ipod is KING. You can't argue that. The company has been in the news almost every day last week. Sometimes there's good news, sometimes bad. But I think the good far outweighs the bad. I'm not concerned about the stock options because Steve Jobs and other CURRENT managers are cleared of any wrongdoing. The good news: Steve Jobs introduced Apple's new I-Phone at Macworld. With this device you can use it to call someone, send messages, watch a video, play your music and even go on the internet! The company expects to sell 10 million of these in 2008. I say buy the stock APPLE because it's on the way to at least $105 per share. And Apple is now Apple, Inc. The company is obviously much more than computers now. The company reports earnings after market close on Wednesday. I say don't buy any shares BEFORE the earnings release because you never know how the market will react to the news. Even if the earnings are good, Investors may sell off shares for any given reason-results may exceed expectations, but not by enough. There could be some profit taking too for whatever reason. So I suggest buying some AAPL AFTER we see the earnings results.

Now about Google (GOOG). Here's a stock that pulled back early last year and now it's taking off again. Analysts are going crazy over this stock as it continues to outperform itself. Now I think the companies like Google and Apple are the driving forces behind a rally in Tech stocks for 2007. Technology is the place to be this year and I am forecasting a sizable gain in the NAZDAQ for 2007-maybe even 10-15%.

I was never a fan of AMD-Advanced micro devices. It's a battle with Intel (INTC). Last week the company offered a 4th quarter forecast that was lower than expected due to the lower sales prices for microprocessors. On Jan 23rd the company will OFFICIALLY report 4th quarter results. At this point since the shares have already taken a hit, I would HOLD the stock if you already have it. Then wait for earnings results and hope that investors react positively and drive the shares up a bit. Then I would see your shares. I don't like AMD. I think Intel is a better company to have and is more likely to win in the war against AMD by taking back market share. I think Intel will hit $30 this year.

Stock Pick of the Week: My pick is GE. They report earnings this Friday. Here's a great conglomerate that's expects roughly half of their revenue to generate from overseas-places like China and the Middle East and Europe. That's great for a company like GE. They've decided to focus on what works by centering on the energy, equipment and engineering, commercial and industrial finance and health care divisions, and to sell the plastics business. I see the company at 45 dollars per share. General Electric is my stock pick of the week. Buy yourself some GE shares after their earnings.

We know the economy is in pretty good shape. There was a strong rise in retail sales for December as reported by the Commerce Department last week. The retail sales went up .9% overall and better than expected. I think that should please the Federal Reserve and encourage them to pause at the next meeting. I also see the Fed even cutting rates by the middle of this year. Also consumer confidence is higher because people appear less concerned about the poor housing situation and higher energy prices. We have a shortened trading week with the market closed for Martin Luther King Jr. Day. Economic data coming up this week includes PPI and CPI numbers Wednesday and Thursday. These are very important-both inflationary indicators which can give us a sense of where the Fed might go with rates. Also Wednesday we'll hear about building permits and housing starts. It should come as no surprise if there are week numbers in this area. Leading Economic indicators come from the Conference board on Thursday. Friday it's the preliminary report on Consumer sentiment from the University of Michigan.

A pretty heavy load of earnings news as we dive into reports coming from the likes of Tech companies Apple and Motorola, the Banks Wells Fargo and Citigroup, and the big conglomerate GE is slated for Friday. The results from GE could have a big impact on the market since the company has so many business areas covered.

Well that'll do it for this podcast of Dave On Stocks. I'm Dave Harris. Thanks for checking in. I'll talk to you again soon with another show. Remember you can write me an email with any investment/financial questions or comments about the podcast at the "contact us" link on this page. My website is at www.daveonstocks.com. This is Dave On Stocks!