NETO printing new 52 week high $41 1/2, amidst a great sea of red ink!
NETO holding in ARK Funds.
The Wall Street Transcript Publishes Money Manager Interview with Giles Knight of ARK Funds
Thu Feb 17 13:54:00 EST 2000
NEW YORK, Feb 17, 2000 /PRNewswire via COMTEX/ -- Giles Knight, small cap
specialist for the ARK Funds, examines portfolio management strategies
In a valuable review of investing strategies, Knight explains his approach to managing money, his insights about the sector, including macro factors for the semiconductor cycle, and offers specific stock recommendations.
Knight states, "We don't currently own a lot of Internet equities, but we have Healtheon/WebMD (Nasdaq: HLTH). The company develops healthcare network solutions for use on an Internet-based information and transaction platform. The
company also provides a wide variety of consulting services and has major relationships with United HealthCare (NYSE: UNH), SmithKline Beecham (NYSE: SBH)and other large companies. Another software stock involving the Internet is
NetObjects (Nasdaq: NETO), which designs Internet and intranet solutions and builds Web sites that can publish content and generate Web applications."
Knight explains, "The prices of wireless communication keep going down through the all-you-can-eat offerings of Sprint PCS (NYSE: PCS), AT&T (NYSE: T), and Bell Atlantic (NYSE: BEL). They're all having this box lunch type thing where
you get so many minutes per month. What that, in effect, has done is increase the users for these phones. So the price has gone down, and it's an economic theory that as prices go down, usage goes up."
Knight continues, "In radio telecom area I like Advanced Radio Telecom (Nasdaq: ARTT). I like ViaSat (Nasdaq: VSAT), which is a satellite company, but it's involved with telecommunications. Digital Microwave (Nasdaq: DMIC), is another great microwave stock that we have. Also, we have a little known Israeli company that I like called RIT Technologies (Nasdaq: RITT). That's pretty much it on the
wireless equipment group. The other area that we like, and it has helped the portfolio's performance, has been the semiconductor equipment stocks. We have Cypress Semiconductor (NYSE: CY) and Semtech (Nasdaq: SMTC). We have Mattson Technology (Nasdaq: MTSN), which is a new acquisition in the equipment area. All three of these stocks are equipment companies that are involved in the various processes of manufacturing semiconductor chips."
Within the semiconductor equipment sector, Knight states, "Our feeling is that the semiconductor cycle is going to be a lot longer this time for several reasons. The main reason is that the usage of semiconductors is increasing
dramatically ... We're seeing a lot of new consumer usages, including DVD players and digital cameras. One of my favorite semiconductor stocks is Zoran (Nasdaq: ZRAN), which makes chips used in these cameras."
Knight comments: "Lucent (NYSE: LU) reported a down quarter in terms of earnings. The stock went from its high of $84 to $53. Yet, earnings do matter for those companies that are expected to beat the estimates and maintain a
certain growth rate. In Lucent, of course, you can break down where the earnings come from, and that's the type of revenue that investors want. When you measure
wireless communications companies, you look at things 1ike churn, ARPU (Average Revenue Per Month), and net-adds per month. It is all important, but we don't really have any fixed numbers."
The Wall Street Transcript is a premier weekly investment publicationinterviewing market professionals for serious investors for over 36 years. |
