mattshome.simplenet.com
thanks for posting that!
before i hunker down to your gritty details ... this might have helped just a wee bit today too.
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SMARTMONEY.COM: Magellan's Latest Tech Picks
By Mark McLaughlin
11/16/1999
Dow Jones News Service
NEW YORK -(Dow Jones)- Is Robert Stansky, manager of the $97.5 billion Fidelity Magellan Fund (FMAGX), a tech bull or bear? It's hard to tell from his fund's latest semiannual report, released Monday. "Valuations in certain areas - particularly technology - are quite high historically," warns Stansky. Then he goes on to predict short-term volatility for the tech sector if investors keep piling into these stocks with no regard for valuation.
Nevertheless, Stansky increased Magellan's technology stake from 20.8% to 22.1% of assets in the six months ended Sept. 30. While that's still less than the 25% technology allocation in the S&P 500, it's far from bearish. And Stanksy can thank technology holdings like Oracle (ORCL) and Cicso Systems (CSCO) for his 16.3% year-to-date gain, which is three percentage points higher than the S&P 500.
"His words don't fit the pattern of his purchases and sales," says Jim Lowell, publisher of the Fidelity Investor newsletter. "He's trying to temper the enthusiasm of the last three months or even the last three weeks where investors assume technology can do no wrong or can recover in a few trading days."
Within his technology allocation, Stansky has become more conservative, replacing profitless dot-coms with profitable telecoms. For starters, he cut his America Online (AOL) stake by 50% and increased telecom giant Lucent Technologies (LU) by over 200%, Intel (INTC) by 71% and Texas Instruments (TXN) by 60%. Other sales included small positions in Autobytel.com (ABTL), Autoweb.com (AWEB), Healtheon/Web MD (HLTH), About.com (BOUT) (formerly MiningCo.com), OneMain.com (ONEM) and Priceline.com (PCLN).
At the same time, he added 17 new technology stocks. These include Yahoo! (YHOO), Internet advertising leader DoubleClick (DCLK), as well as software and storage plays Inktomi (INKT), Tibco Software (TIBX), Xoom.com (XMCM), Gadzoox Networks (ZOOX) and Network Appliance (NTAP). Other additions are companies involved in supplying the networks or pieces of the networks that will carry voice and data, including Nortel Networks (NT), JDS Uniphase (JDSU), Redback Networks (RBAK) and Broadcom (BRCM).
"It's a shift towards a more mature vision of the new economy," explains Lowell. "He wants to own the parts rather than the frills and the quick bang-for-your-buck [stocks]." |
