Scott....<DELL will rise again (yet, maybe not as soon as many of us would like it to <G>.............Owings Mills, Maryland, Oct. 1 (Bloomberg) -- The rising stars in the technology industry will be
companies that help others convert into an Internet-dependent society, three analysts said on 'Wall
Street Week With Louis Rukeyser.' 'Technology is not about the computer, but what happens when
we connect all the computers and the impact on society it has,' Kevin Landis, portfolio manager at
Firsthand Technology Funds, said on the Public Broadcasting System program.
Landis is picking stocks that will move on the market's appetite for faster computer and
telecommunications systems. He recommends Qualcomm Inc., developer of the world's second-most
popular cell-phone technology; Concord Communications Inc., which makes software that spots bugs
in computer networks; and TriQuint Semiconductor Inc., which makes high-speed telecommunications
chips.
At the same time, he says, he's staying away from personal- computer makers, despite profits that some
investors have found in that sector. 'That market is getting a lot less sweet,' he said.
Other guests said PC makers need to push their focus to Internet infrastructure and providing
consumer services to remain competitive as product prices drop. 'The model for PC manufacturing is
shifting,' said Jay Hoag, general partner at Technology Crossover Ventures.
Hoag's selections center on electronic-commerce and include Internet consulting firm Viant Corp.,
car-shopping service Autoweb.com Inc. and lender Mortgage.com Inc. He said those companies
provide traditional services over the Web, boosting their efficiency.
John Doerr, a partner at Kleiner, Perkins, Caufield & Byers, said there's still a lot of growth ahead for
larger, better-known tech companies as well. Despite conflicting opinions about whether Amazon.com
Inc. will ever turn a profit, he thinks the biggest Internet retailer will perform well long-term.
Doerr refuted comments made last week by Steven Ballmer, president of another company that he
recommends, Microsoft Corp. Ballmer said at a conference that technology stocks, including Microsoft,
were overvalued. 'I think he was wrong. It's still very, very early in this market of opportunity,' Doerr
said.
After recent weeks of interest-rate concern and worries over profits from companies in most sectors,
the guests agreed the 'mood swings' in the market are going to continue. Investors looking for a
steady path will find it tough to find.
Said Landis: 'Get comfortable being uncomfortable.'
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