Harmon's picks from yesterday:
Money Talk: Which Internet stocks would you say have the best outlook for growth over the rest of the year and why?
Harmon: Second-wave Internet. What's that? Broadband infrastructure and business to business. Broadband opens up whole new ways of content, commerce, community. It's like going from radio to color TV, everything looks different. Several ways to enjoy this wave:
Broadcom {BRCM}, one of my perpetual favorites (a top pick of 1998). Makes both cable modem and DSL chipsets, recently
debuted a 10-in-1 chip to much acclaim.
Copper Mountain Networks {CMTN}, which Dataquest reported
shipped about 30% of business DSL hardware in 1998. Revenue
and earnings very strong.
Orckit {ORCT}, another great growth story similar to Copper
Mountain in many ways though not all, looks relatively cheap vs. Copper Mountain on valuation basis.
Yahoo! {YHOO} has its Turbo Yahoo initiative, Broadcast.com
assets, and could be a monster in the making in broadband
content--if Jerry Yang and David Filo can lead the Yahooligans into rich media. All that hardware needs some content on top of it.
High Speed Access Corp. {HSAC} is one I keep mentioning
because of Paul Allen's investment in it and the belief that Paul may bundle this into his Charter Communications cable group somehow. Paul speaks often of his wired world vision. HSAC may fit in there, along with Go2Net {GNET} which Paul owns about a third of.
AOL {AOL} no matter what anyone says has the largest installed base of Internet users on the planet. All counted more than 60 million people use an AOL service of some sort: AOL, AOL.com, Netscape, ICQ instant messaging, AOL IM. AOL has $1.4 billion cash on hand, DSL and satellite deals.
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