San Francisco–based Citi researcher Jim Suva claims first place for a third consecutive year. The 42-year-old, one loyal money manager reports, takes a “neutral and calm but rightly balanced approach in an area where market-oriented views are prevailing heavily.” Suva is advising clients that the long-term prospects for connector manufacturers are very positive, indeed. He foresees a lasting trend in “the increased electronic content in every aspect of life, from wearable technology, smart phones and tablets to even nontraditional items such as automobiles and airplanes,” Suva says. “It’s an exciting time to be a well-positioned connector company.” Favored among this subsector are Amphenol Corp. of Wallingford, Connecticut, and Switzerland’s TE Connectivity. Perhaps surprisingly, he contends that “in aggregate, there has not been much growth in global technology, as product pricing continues to be very competitive in order to drive purchases.” So he says it’s time for investors to stop looking for what he terms “a hero” company and to prefer instead those that adapt and adopt technology changes faster than their peers. “We see the lines between products such as smartphones, tablets, notebooks and desktops blurring, and the unique differentiation across competitive products becoming less apparent,” he concludes. Suva tracks 29 stocks across this sector and information technology hardware. — Pam Baker |
The 2013 All-America Research Team: Technology Supply Chain, No. 1: Jim Suva
