Prudential's Wachtel Says Oil Prices No Longer A
Huge Factor
Monday, November 29, 1999 11:01 AM
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NEW YORK -(Dow Jones)- Larry Wachtel, market analyst for Prudential Securities, doesn't believe
higher oil prices are having the same effect as in 1973 and 1990 when increases sparked stock-market
downturns.
"Oil doesn't have the (same) profound effect on the stock market. It has the spill-over effect, but it's not
the be-all as it was back then," Wachtel said in a CNBC interview Monday.
Wachtel likes Compaq Computer Corp. (CPQ, news, msgs), which he is confident has hit bottom "both
technically and fundamentally."
"Compaq is ready to make the turn," he said.
Among retailers, Wachtel recommends Gap Inc. (GPS, news, msgs). He believes Gap is "relatively"
undervalued because the chain isn't doing too well, although the company's Banana Republic and Old
Navy units have performed well.
Quote for referenced ticker symbols: CPQ, GPS
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