I think this might be the reason for NT's move today.
cbs.marketwatch.com
Merrill 'top ten' tech list
Brokers hot tech stocks are the 'safe' Internet plays
By Emily Church, CBS MarketWatch
Last Update: 1:16 PM ET Sep 9, 1999
NewsWatch
NEW YORK (CBS.MW) -- Merrill Lynch spark a rally in some technology stocks Thursday with a
report describing its "top ten tech" investment recommendations.
The stocks in Merrill's special report for "aggressive investors"
represent cross-sector picks from the brokerage's technology analysts.
The picks were gleaned from a list of U.S. companies with a market
capitalization over $1 billion, according to a copy of the Sept. 8 list
obtained by CBS.MarketWatch. Merrill keeps a running list of its 'top
ten' tech stocks, making alterations when a stock is downgraded by an
analyst for example.
No pure Internet stocks made the list, but much of the 'top ten' appears
to be built on Internet growth, including infrastructure plays like Cisco
and Intel.
The List
Cisco (CSCO: news, msgs): The routers and switches maker
"should continue to benefit from the rapid growth of the
Internet's infrastructure," the report says.
Intel (INTC: news, msgs): The company's move in
communications-oriented chips "could pose a competitive
challenge," Merrill says. Internet growth should fuel Intel's
growth as well, the report says.
IBM (IBM: news, msgs): Merrill gives a thumbs up to IBM's multi-tasking model, saying
IBM "creates value by offering a variety of solutions that include... services, software,
systems financing and technologies."
KMET (KMET: news, msgs): The only relative unknown on Merrill's list gets a mention as
the largest U.S. manufacturer of solid tantalum capacitors, which are used in circuit boards.
"The company continues to experience strong order rates," the note says.
Motorola (MOT: news, msgs): Merrill likes the new product plans at the company,
including digital cellular phones, 2-way pagers, cable modems and satellite communications,
which are "keys to future growth."
Nortel Networks (NT: news, msgs): The telecom play is cited for its complete family of
digital switching and transmission systems.
Novellus Systems (NVLS: news, msgs): The chip equipment provider's "business model,
based on outsourcing its manufacturing, has allowed it to achieve higher levels of
profitability."
Oracle Systems (ORCL: news, msgs): "New Internet-friendly applications... are gaining
favor for mobile workforce applications," Merrill says. "We believe these new product
cycles, plus likely margin expansion, can drive (earnings per share) growth for the next 18-24
months."
Sun Microsystems (SUNW: news, msgs): The computer workstation and server maker, like
many of its peers on the list, "is poised to benefit from the explosive growth of the
Internet," Merrill believes. "In our opinion, Sun is on the verge of becoming a franchise stock
given its focus on Internet computing."
Texas Instruments (TXN: news, msgs): Merrill expects sales of the chip vendor's DSPs,
analog integrated circuit devices "should grow by more than 20 percent, driven by
accelerating demand for wireless handsets, mass storage and broadband access equipment." |
