=DJ Salomon's Molnar Says Money Flowing Into 'Cheap' Cos.
NEW YORK (Dow Jones)--Money continues to flow into investments that are
considered cheap, particularly in the technology sectors, said Michael
Molnar, Salomon Smith Barney's managing director of equities trading.
Technology will continue to be the "favorite flavor" on the trading floor,
and anything considered cheap will at times garner attention, Molnar told
CNBC in an interview Friday.
Molnar also said money is flowing back into Compaq Computer Corp. (CPQ),
Dell Computer Corp. (DELL) and Lucent Technologies Inc. (LU).
Regarding what the Dow's recent decline means, Molnar said that anyone who
allocates money on an investment basis is under pressure to perform.
"Velocity of money is higher than ever before and investors are losing
patience," he said. Investors are focusing on the outsize gains of a handful
of stocks and money is moving quickly out of the weak performers and into
stronger hands, added Molnar.
Money is also moving into small and mid-cap stocks because large cap stocks
may not perform as well in an environment where the economy is slowing, he
said.
"Smaller and mid-cap companies can do very well regardless of the overall
economic environment," Molnar said.
-Donna Fuscaldo; Dow Jones Newswires; 201-938-5174
(END) DOW JONES NEWS 02-25-00
11:53 AM
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