it gets better... lol
Ten New Positives Can't Be Denied
By James J. Cramer
07/24/2003 01:45 PM EDT
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Market Analysis BULLISH
Video games are for real.
Leverage in the cyclicals is real, too.
The Internet's huge.
There are some serious new positives on the day that have to be pointed out by someone, so I might as well do it.
First, the video game business, far from being a seasonal, faddish and cyclical business, now seems to be something that I can only describe as being organic in nature. This Electronic Arts (ERTS:Nasdaq - news - commentary - research - analysis) number was magnificent, and anyone with kids can understand the pull here.
Second, the leverage in the cyclicals, both bottom and top lines, is well in evidence in the outstanding quarter Dow Chemical (DOW:NYSE - news - commentary - research - analysis) reported. If it catches a raw cost break, Dow goes to $50.
Third, the autos are getting some new life. Heck, even the press today had positive things to say, and the hangover from the big GM (GM:NYSE - news - commentary - research - analysis) convertible is finally worked off. Given that the single biggest possible worry out there is a poorly managed Ford (F:NYSE - news - commentary - research - analysis) going belly-up, this uptick in used-car sales is welcome news.
Fourth, the comeback of both AT&T (T:NYSE - news - commentary - research - analysis) and AT&T Wireless (AWE:NYSE - news - commentary - research - analysis), now both freed from the hands of Michael Armstrong, is simply incredible. Hats off to David Dorman, who figured out what to do with AT&T. He has really done it in record time. Truly amazing. He's a keeper.
Fifth, Corning's (GLW:NYSE - news - commentary - research - analysis) going to make it. This comeback is textbook in that each good move to deleverage only knocks the stock back a tad. Well done.
Sixth, I didn't hear the usual squawking when Computer Associates (CA:NYSE - news - commentary - research - analysis) reported that number. I think this company may be on the right path and the sins of the fathers have been absorbed and passed. This stock, along with EDS (EDS:NYSE - news - commentary - research - analysis), used to be an important tech growth engine. Could it be happening again?
Seventh, LSI's (LSI:NYSE - news - commentary - research - analysis) back! Great job on a company that will be working its way higher.
Eighth, Ditto Veritas Software (VRTS:Nasdaq - news - commentary - research - analysis).
Ninth: Ditto Symantec (SYMC:Nasdaq - news - commentary - research - analysis). Computer Associates, Symantec, Veritas -- we've got ourselves a rocking cohort! It's about time.
Ten: The Net. 'Nuff said. |
