Yaacov, only stocks i trade are the ones that i dont mind getting stuck or big erning disappointments.
I think sunw will run to new highs when the rally starts and I am not too occupied by trying to make $4-5 bucks and missing a HUGE rally when the market soars. If u just look out to 2-3 monnths in advance instead of 2-3 days (which i also do) there are big monies to be made. Here is a list of Milanovich stks.
-sonki
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Steve Milunovich, Merrill Lynch (ADBE, CSCO, DST, EMC, NT, SLR, SUNW, SANM, CDN, PVTL, JDSU(sdli) LU)
Steve Milunovich is the Global Technology Strategist with Merrill Lynch
Some of the tech sector's valuations got a little too high, so investors shifted to old economy stocks this year, evidenced by a 4% increase in the Dow Jones Industrial Average and a decline of 6% in the NASDAQ and a 10% decline in the Merrill Lynch Technology 100 Index
Communications and storage networks - in particular, optics - lead the decline. These stocks had to have their valuations cut for the rest of the tech sector to rebound
Merrill's Techfolio was hurt during the week, but it still managed to outperform the Merrill Tech 100. The stocks in the Techfolio are ADBE, CSCO, DST, EMC, NT, SLR, SUNW, SANM, CDN, and PVTL
The Techfolio was hit hard by weakness in NT, but Mr. Milunovich believes the stock was hurt by an emphasis on revenue instead of earnings growth by the market
This stock just has to find a level, and valuation was the reason behind the sell-off. The business is extremely strong, reiterated by strong numbers from JDSU
There are some parallels between today's optics space and the Internet of the last couple of years, but optics are much stronger for several reasons:
The build-out in bandwidth is very real
These companies have strong business models
Unlike the dot-coms, most optics companies are generating positive earnings
Further, many suppliers are sold-out into next year
The sector must find a bottom; investors shouldn't give up just yet. Mr. Milunovich likes NT and JDSU here, but he would stay away from LU |
