I though you guys might get a kick out of this segment of JD's Wednesday night hotline:
"Ericsson (OTC, ERICY, $32-7/8) is still one of my favorite
stocks in the telecommunications group. There was an article on Ericsson in Barron's last weekend. The article was basically positive. But there was a quote from one money manager who was very negative on the stock. Unfortunately, against my will, that manager is still using my name. From the e-mail I can tell that this caused some confusion. Please make no mistake, I have nothing to do with my former firm. I am now chairman of McGinn investment management here in Alexandria, Virginia. There is only one John Dessauer's Investor's World. As always, I write my own newsletter. I do my own research and analysis. In my opinion, Ericsson is a fine company that ran into a competitive slump and is now well on the road to recovery. The 4th quarter of 1999 may not show the full story of Ericsson's progress. But as we get into the new year, I am confident that Ericsson's results will be exciting and the stock will go higher. I have a 12-month price target of $45. My advice is to buy Ericsson on dips. By that I mean that I would like to buy the stock below $30."
After reading this I had to find my Barron's and read what Tom McIntyre of Dessuaer & McIntrye said to send JD over the edge. Essentially, all Tom said was the Ericsson has under-performed and not met their estimates for the last few quarters and that he didn't see this changing in the near-term. He also said that he favored selling Ericsson and buying Lucent.
I can't say I disagree with him. JD had fallen in love with Ericsoon and missed the boat with Nokia, Qualcomm, and Lucent. Technology stocks are not his strong point and he should look for some assistance in this area.
IMHO,
Steve |
