Right on the money telecomguy. NT is a screaming buy here.
I added to my portfolio.My 12 month target $65,
TA
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Message #9078 from telecomguy at Dec 20, 2000 10:15 AM
The herd mentality and psychological aspect of the economy is a big question mark that's hurting the stocks.
There is real fear that the sudden loss of equity will affect the consumer's psychological desire to consume.
Having said that, the Internet is real, telecom revolution is real, productivity gains we have been experiencing due to technology deployment is real and these wealth creating gains have to feed back into the market indexes at some point. Naz at 5000 was too fast, too high but Naz at 2000 as some Bears are predicting may be a temporary low even assuming we go to that territory.
In the mid to long-term, Internet and telecommunication will bring unprecedent wealth creation and if asutute long-term fundamental investors pick right basket of tech stocks right now, they will reap very large gains within the next 5 years (which is MY definition of long-term).
Meanwhile, it's amazing how many good small cap tech companies are getting slaughtered as fear takes over greed in this turbulent times.
Aside from NT which is my single, lone large-cap tech stock, I am betting on slew of small-cap tech stocks (ZRAN, CUBE, DTEC, ALN, BRKT) who are well capitalized, profitable and are in the Internet driven niche.
I also have added sizeable holdings recently in the Semi equipment vendors who have already been slaughtered due to the semiconductor slowdown forecasts (KLIC, EGLS, COHU). All these companies are profitable, have substantial cash balance and are trading at PE multiples below 10.
EXFO and NEWP are two optical component mfg equipment vendors who should continue to ride the optical surge (and Optics is REAL as it can get!). They may be also very good picks if they continue to go down driven by fear of Retail investors who are in the mode of equity preservation right now.....
Just my two cents worth of positives in these tought times..
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