I will just do that below 532 on DOT... but not before....
Frederick W. Moran
Managing director media and communications stock research
Education: B.S. The Wharton School of Finance and Commerce,
Lighten Up On Internets
Bob Morrow, Principal,
Robert S. Morrow Institutional Advisory Service
By K.C. Grainger
Bob Morrow, an institutional advisor who utilizes market timing, counsels some of the largest financial institutions in the world. Using his mathematics-based analysis, Mr. Morrow, principal of Robert S. Morrow Institutional Advisory Service, has made a number of astonishingly accurate market calls since 1980.
So what does he see happening in the market for Internet stocks? For the general market he forecasts no more than a possible 5% to 6% market upside, to be followed by corrections of 13% to 14% for the S&P 500 and 23% to 26% for the Nasdaq. He thinks Internet stocks could fare much worse in the coming months. He is expecting a very sharp correction in the general market over the next quarter, and believes that Internet stocks could be severely impacted.
He said that while AMERICA ONLINE (AOL) and YAHOO! (YHOO) are positive technically, it's too late to jump on their bandwagon. He sees perilous declines ahead for AMERICA ONLINE, which he forecasts could sink to $90. YAHOO! he sees falling to $120. He believes that both should be sold.
LUCENT TECHNOLOGIES (LU) and MICROSOFT (MSFT) are also strong technically, Mr. Morrow said, but should be sold into any rallies. He expects LUCENT TECHNOLOGIES to go to $56 – or less – and he expects MICROSOFT to go to $75 or lower. He recommends selling into strength.
He also noted that other sell-into-strength candidates include FIRST DATA (FDC), AMERITECH (AIT), CISCO SYSTEMS (CSCO), NOVELL (NOVL) and SUN MICROSYSTEMS (SUNW), all of which are facing declines of at least 23%. He counseled not to fight the oncoming decline by hanging on or trying to grab that last 6% upside He advised avoiding the minimum 23%-26% correction by selling now.
|
