Kemble, There is light at the end of the tunnel! Buy DELL! :Leigh
news.cnet.com.
Investors still shun some Net giants
By Dawn Kawamoto
Staff Writer, CNET News.com
May 2, 2000, 11:55 a.m. PT
Where's the so-called flight to quality?
"A lot of investors want to wait for the markets to clearly turn around. No one wants to catch a falling knife," said Merrill Lynch analyst Henry Blodget. He added that some investors have already begun to buy some of the more "solid" companies.
Institutional investors, meanwhile, say they are weeding through their portfolios and cutting under-performing or smaller holdings, but their buying activity is far from a binge.
Huachen Chen, co-manager of the Dresdner RCM Global Technology Fund, said he cut about 15 percent from his fund in mid-March. Most of the companies cut, including security software maker Aladdin Knowledge Systems, had ultra-high valuations, Chen said. In early April, as market conditions further deteriorated, he whacked a whopping 30 companies from the 85 held in the portfolio.
"We moved into more conservative stocks like Intel and Dell and added to our positions in Commerce One, Ariba and i2," Chen said, noting that the degree to which he is buying is not substantially above a usual pattern.
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