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" December issue of my newsletter will be in the mail (and on our Web site) on Friday. In it, I have a new technology recommendation for you, Texas Instruments (NYSE: TXN, $29.18), another global leader in technology.

The company's products are focused on telecommunications. Nokia, for example, is a major customer. Because of investors' worries about the growth in cell phones Texas Instruments' stock price has languished for some time. Meanwhile, in spite of difficult industry conditions, earnings and cash flows have been climbing. The company is financially very strong, has a major stock buyback program and is raising the dividend. Wall Street has modest expectations. Analysts look for a 4.6% increase in 2007 revenues.

I think Wall Street is missing the developing growth wave in technology spending, so the stock trades at just 15 times 2007 earnings estimates. This stock traded at 30 and 40 times earnings in the late 1990s. I am not predicting a return to the tech bubble days, but I do see Texas Instruments as a low-risk opportunity and a stock that can reach $40 within 12 months. Texas Instruments is a Buy."

So I bought some today.
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