"Tech Wreck 2000 Puts 10 High-fliers on Bargain List (COMS)"
"Bargain investor John Buckingham says he does not care whether
last month's carnage in the Nasdaq is just a correction or
signals a bear market. He is more interested in the many
technology shares that returned to his buy list of stocks
that, in his analysis, are selling for below 50% of their fair
market value. Buckingham offers a basket of 10 favorites, each
in a unique sector of technology. "It is tempting to
overweight this sector given the superior gains of many of our
tech stocks over the last two years," he says.
One of Buckingham's tech picks is networking pioneer 3Com
(COMS - $43.00). The broad-based supplier of LAN and WAN
systems recently spun-off its Palm Pilot unit into Palm Inc.,
a new publicly-traded company. 3Com now trades at a P/E
multiple of 17, extremely low for a well-known stock in the
lucrative networking sector. Revenues fell 2% over the last
nine months thanks in large part to delays in the launch of
several new products. But net income for the period got a
boost from a $749.8 million gain on an investment.
Another Buckingham selection is Adaptec (ADPT - $20.00). The
firm's input/output, RAID (redundant array of independent
disks), and other systems speed the data transfer rate between
PCs, servers, peripherals, and networks. Thanks to aggressive
cost-cutting programs, net income over the last nine months
soared to $134.4 million vs. a loss of $59.7 million on an 18%
rise in revenue. But stock in Adaptec languishes at a
depressed P/E multiple of 13.
For more on John Buckingham's advice see "Portfolio Builder,"
May 2000, The Prudent Speculator. The Prudent Speculator.
Independent watchdog Mark Hulbert lauds The Prudent Speculator
as the only investment newsletter to reach the Top 5 in total
returns in each of the past five, eight, ten and 15-year
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