Leading the way was semiconductor manufacturer Qlogic with six insiders purchasing 16, 000 shares without any sellers.

FORBES: Inside the Velvet Rope

Both Magma and QLogic sell at a multiple of 11 times normalized earnings per share.

FORBES: Buy These Small-Caps Before They Get Big

As the dominant incumbent, QLogic occupies a valuable niche in the early phase of this upgrade cycle.

FORBES: Buy These Small-Caps Before They Get Big

His 2012 long pick again comes from the technology sector, QLogic , a Calif-based networking designer and manufacturer.

FORBES: If You Could Love Only One Stock in 2012

He cuts both Brocade and QLogic to Underweight from Neutral, as likewise gets cautious on the storage area networking market.

FORBES: J.P. Morgan Now Wary On IT Spending; Downgrades 5 Stocks

QLogic shares are trading sharply higher Friday on a better-than-expected earnings report for its fiscal third quarter ended December 30.

FORBES: QLogic Spikes As December Quarter EPS Tops Ests

Looking forward, we see attractive characteristics in three other names: QLogic Corp. ( QLGC), Magma Design Automation ( LAVA), and American Eagle Outfitters ( AEO).

FORBES: Buy These Small-Caps Before They Get Big

He took the title from Jason Ronovech of Paradigm Capital Management, who missed the cut this year with his 2012 long pick of QLogic (down 35%).

FORBES: If You Could Love Only One Stock in 2013

On the other hand, the analyst says he would steer clear of Hewlett-Packard, Lexmark, Xerox, Brocade, Emulex, QLogic, and STEC.

FORBES: J.P. Morgan Now Wary On IT Spending; Downgrades 5 Stocks