If you did your DD you'd know why... We all know you're just here to play you're little NT is great and CSCO isn't game. We already understand your position so you can move on now.... Please! fwiw we read the same reports you do.
cbs.marketwatch.com
Broadband fund may be good bet
Also: U S West's a breeding ground for DSL industry
By Jeffry Bartash, CBS MarketWatch
Last Update: 8:37 AM ET Apr 7, 2000
NewsWatch
WASHINGTON (CBS.MW) -- Looking to invest in hot "broadband
stocks" but can't afford the penthouse prices or aren't sure which
companies to pick?
Take a look at Merrill Lynch's new Broadband HOLDRs (pronounced
"holders"), an investment vehicle that began trading Thursday on the
American Stock Exchange. The $550 million holder (BDH: news,
msgs) invests in 20 of the companies expected to play a key role in the
development of technologies aiming at giving consumers and
businesses affordable access to high-speed data and Internet
connections. See here for more information.
By putting money in such a vehicle, which acts like a single stock,
investors can play the hot "broadband" market even if they're unsure
which companies will be the winners. And though its current price of
95 might seem kind of high, 12 of the stocks in the fund trade well
above that level, making it a more affordable vehicle for, as well as a
more diverse way of, investing in the sector.
By and large, the holder concentrates on
telecommunications equipment makers. While
hundreds of carriers will compete for the
business of consumers and companies, the
carriers likely will buy their gear from only a few
dozen software and hardware suppliers.
If there's a war going on, as analysts like to say,
it's best to buy the guys who provide the
ammunition. In this case, that's the equipment
makers.
Though the fund includes 20 companies, almost
half the index is weighted to the two of the
equipment giants -- Lucent Technologies (LU:
news, msgs) and Nortel Networks (NT: news,
msgs).
"We want somethin truly representative of the
sector. The biggest players in the industry ought
to account for a bigger portion of the basket,"
Steve Bodurtha, head of Customized Investments
at Merrill Lynch, told CBS.MarketWatch.com
One surprise omission: Cisco Systems (CSCO: news, msgs).
Bodurtha said Merrill Lynch considered including the networking
giant, which is the biggest U.S. company in terms of stock market
valuation. Yet he noted that Cisco is already in the brokerage's Internet
architecture holder, which the firm believes is the more appropriate
place for the company. "Cisco is part of so much that's going on" in
the telecom world, he noted.
Below is a listing of the other 18 stocks, all but four rose sharply
Thursday after the introduction of the new holders fund:
* Motorola (MOT: news, msgs);
* Qualcomm (QCOM: news, msgs);
* JDS Uniphase (JDSU: news, msgs);
* Broadcom (BRCM: news, msgs);
* Corning (GLW: news, msgs);
* Sycamore Networks (SCMR: news, msgs);
* Applied Micro Circuits (AMCC: news, msgs);
* Tellabs (TLAB: news, msgs);
* Terayon Communications Systems (TERN: news, msgs);
* PMC-Sierra (PMCS: news, msgs);
* Comverse Technology (CMVT: news, msgs);
* SDL Inc. (SDLI: news, msgs);
* Conextant Systems (CNXT: news, msgs);
* Next Level Communications (NXTV: news, msgs);
* RF Micro Devices (RFMD: news, msgs);
* Scientific-Atlanta (SFA: news, msgs);
* Ciena (CIEN: news, msgs); and
* Copper Mountain Networks (CMTN: news, msgs).
U S West reunion
Michael Glinsky, a former chief financial officer of U S West, has
joined Northpoint Communications (NPNT: news, msgs), an
independent high-speed Internet access provider, in the same capacity.
The move unites Glinsky with a former U S West associate, Northpoint
Chief Executive Liz Fetterer. Investors also likes the news, lifting the
company's shares more than 5 percent. Northpoint (NPNT: news,
msgs) rose 7/8 to 19 1/4, though it had been up much higher.
U S West was the first major phone carrier to push the introduction of
so-called DSL service, a form of affordable high-speed access
available to consumers and small businesses over ordinary copper
phone lines.
As the industry has expanded, however, lots of top U S West
executives have left the Baby Bell to run DSL startups. It's given them
a chance to run their own companies and the opportunity to make big
bucks via stock options and initial public offerings.
Aside from Northpoint, former U S West VIPs also run Covad
Communications (COVD: news, msgs) and Rhythms NetConnections
(RTHM: news, msgs), two other prominent DSL suppliers.
With the impending sale of U S West (USW: news, msgs) to Qwest
Communications (Q: news, msgs), look for more executives at the
Baby Bell to seek greener pastures.
Indeed, on Wednesday, Joe Zell, head of U S West's data networking
unit, said he would join Convergent Communications (CONV: news,
msgs). The Englewood, Colo.-based company provides businesses
with various Internet-related services, such as data transmission,
network management, Web hosting and advice on setting up "e-commerce |
