Redherring.com--"Fish or Cut Bait: Good riddance to Y2K", 1/2/01...
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>>>Fish or Cut Bait: Good riddance to Y2K
By Paul R. La Monica
Redherring.com, January 02, 2001
OUCH!
OK. Enough ego gratification for one column. Now it's time to look at some of my bad calls. I made the mistake of recommending several blue-chip technology stocks with admittedly high valuations during August and September, thinking that the worst was behind us. Boy, was I wrong.
I am still a firm long-term believer in many of the stocks I recommended during the summer most notably:
... Broadcom (Nasdaq: BRCM),
... EMC (NYSE: EMC),
... Network Appliance (Nasdaq: NTAP),
... Ariba (Nasdaq: ARBA),
... Commerce One (Nasdaq: CMRC), and
... Openwave Systems (Nasdaq: OPWV) -- the company formed from the merger of Phone.com and Software.com.
But these six stocks have not been immune from the incredibly bearish environment for technology stocks during the fourth quarter of 2000.
Since I wrote about them:
.. Broadcom has fallen 64 percent,
... EMC has slipped 34 percent,
... Network Appliance is down 51 percent,
... Ariba has plunged 58 percent,
... Commerce One is off 44 percent, and
... Openwave has dropped 50 percent.
But analysts have raised their 2001 earnings estimates for all six companies in the past three months.
These six are companies that I believe will bounce back.
Obviously, I wish that I hadn't been so bullish just before the entire technology market took another steep plunge.<<< |
