IBM, MSFT, DELL, VZ, AAPL, SBC, HWP, CPQ and of course whomever has to service billions of tech consumers world-wide. Don't forget, the internet revolution is just beginning in most parts of the world. Very few people have fancy new computers and DSL yet. Since Y2K most people haven't upgraded computers. Travel around the world and you'll see rather primitive tech conditions. As the recovery gets underway, fueled by low rates and a more optimistic feeling (no more paranoia the sky is falling) orders and purchases will pick up nicely. You can play last quarter or this quarter but the next quarters are going to be better and better. Shorts criticize HWP for giving positive guidance and stating the bottom is behind us but why do you assume they're lying? The best buys for multiple profits now are the most hurt stocks. Okay the ons that run up too fast might need a small hair-cut but in general I think you'll find that LU, NT, SUNW, ERICY etc. will all be up a minimum of 50% from these levels within 9 months or so. At minimum. Perhaps more and perhaps doubles. If you want to play against that "fact" (okay no one really knows) then go ahead. Or short WFII at ten cents. Fine. But I think in every case you'll see the bad news priced in, except for some scalping opportunities on the short-side at rally peaks. But this rally is not finished yet for most stocks, big telcos least of all. WCOM's not going to double without a buy-out but it will hit 25 very soon. At least I'm betting it will. I'll take those 6 bucks a share.
VZ, SBC, FON are all at bottoms and no reason for them to go down except people are busy buying other stocks and don't want anything defensive at the moment. My target for VZ is $75 this year. At the time of its big wireless IPO ("when market conditions improve" and they are now). At a PE of 12 now it can get there without too much resistance. GTE and BEL both used to have PE's in the low to mid 20's. |
