Tradingweapon.com Interview:
Question: What are your feelings on Corning [GLW], EMC Corporation [EMC] and Level 3 Communications, Inc. [LVLT]?
Are you smoking something? I'm not interested in you people losing your butts, regardless of how much you want to lose them. You may come to the end of my driveway and I will meet you and shake you until you understand.
sageonline.com
Question: Are Global Crossing Ltd. [GX] and Corning Incorporated [GLW] buys here in your opinion?
No, they're not. Oracle Corporation [ORCL] is reporting after the close, we're expecting single digits for Oracle.
Question: The Wall Street Journal reports that a recent survey of professional money managers shows them to be more bullish about the next six months than at any time since the survey began in 1994. Would you view this as a contrarian indicator?
I really don't have any opinion; I have no track record to go on with that piece of data. The good contrarian signal is when CNBC stops broadcasting all day and goes back to four or five hours of coverage. That might be the time to buy tech.
Question: Do you think Lucent Technologies Inc. [LU] is a buy in the mid-5s?
Absolutely not. Do you mean mid-5 cent area? You have to take a strong look at the debt structure of Lucent. Also factor in that they were in an absolute panic with the Alcatel [ALA] deal. I still say that their Murray Hill headquarters has more promise as an indoor used car lot than anything Lucent can put it to use for.
Question: What is your opinion of Jabil Circuit, Inc. [JBL], and should I sell or hold?
We think there's some distance to go in Jabil to the downside. It's a sell; it's not the place to be. It's not the stock to be in, and you can't even trade these stocks because they're constantly faced with event risk. Those events are almost always negative. I don't know how much money we have saved people on America Online, Inc.'s (AOL) MarketTalk, but it has to be mounting out. If we can keep you from losing money, it's almost important as making it.
Question: Are any of the techs worth buying for a hold like Corning [GLW], JDS Uniphase Corporation [JDSU], Cisco Systems, Inc. [CSCO] and Nortel Networks Corporation [NT]?
Absolutely not, the answer is NO. I can tell you haven't gotten your daily fix of high tech, smack me in the face, masochistic excitement today. If you have to have this kind of excitement, buy Oracle [ORCL] right now at $14 and sell it out in a month or two at $8. Now that should help you out. Now let's get off these techs. Let's start doing some real work.
Question: What are your feelings on Corning [GLW], EMC Corporation [EMC] and Level 3 Communications, Inc. [LVLT]?
Are you smoking something? I'm not interested in you people losing your butts, regardless of how much you want to lose them. You may come to the end of my driveway and I will meet you and shake you until you understand.
Question: What is going on with Westmoreland Coal Company [WLB], XTO Energy Inc. [XTO] and OMI Corporation [OMM]?
Westmoreland's coming back into the base. You can start buying here, on any bounce off or a minor break of $12. It's a strong buy on this pullback. XTO is somewhat similar. We want to buy this independent producer starting now and hopefully on a break of $15. It's a strong buy. OMI has yet to break out of the base at $7 1/2 to $8; it had a minor heart attack at $8. That's a buying opportunity and a strong buy right here. Also, in shipping, A.C.L.N. Limited [ACLNF] $30, reported magnificent earnings and revenues. Moved from $28 to $33 and back to $28, currently $30. Strong buy right here with a price objective of $45 to $50.
Question: What is your opinion on ADC Telecommunications, Inc. [ADCT] and Cambridge Heart, Inc. [CAMH], and are they a buy, sell or hold?
On ADC, check back around Christmas time 2002. This stock needs a long base and a bounce off $5. On Cambridge, okay it has a base of sorts, $2 to $3, currently $3. Products are for the non-invasive diagnosis of cardiac disease, so this is trying to figure out if someone has heart disease prior to them falling over and croaking. No debt, not much in earnings and not much in revenues. Looks like a hole in the donut to me. Avoid.
Question: Do you have a minimum requirement for investment with your company?
$100,000, but I do listen to sob stories. So if you have a good story and you only have $25, I might listen to it, but don't expect much diversification with $25. The reason I need $100,000 usually is because risk increases when we have lack of diversification. It's hard to get proper diversification with accounts less than $100,000, but it can be done. It's just that it takes more work. The question is, do I want to do the work, and a lot depends on the nature of the relationship between the client and myself. I can be quite a jerk, so I like people who are generally jerks themselves because we tend to get along.
Question: Do you feel Global Sports, Inc. [GSPT] and Cisco [CSCO] are good long-term stocks?
Global Sports -- there's something going on with revenues over the last two quarters and probably represents an acquisition. They seem to have enough money to make it for a year or two given their burn rate, but this is a real fundamental call. You have to be wired, and I'm not wired on this company, so you're on your own. Cisco -- I hate to keep bashing Cisco. I've been doing it for a year, and I don't know who's listening anymore, but we have been predicting single digits for Cisco. So at $16 1/2, we still have some distance to go. It is a sell.
Question: Do you still like Adaptive Broadband Corporation [ADAP] and 3Com Corporation [COMS]?
No.
Question: What is your opinion on Orchid BioSciences, Inc. [ORCH]?
It doesn't ring any bells, but I sort of like the stock trades with a decent base at $4, significant increases in revenues over the last two years and losing a lot of money in spite of those increases. But that could be changing. It's worthy of investigation, but the consolidation is not quite complete. Very often these stocks give back 100 percent of their initial moves, that move was from $4 to $8+. So at $5.45, we're not quite there yet, but you could start accumulating on a break of $4 3/4 if you have faith in this company. The company's located in Princeton, New Jersey.
Question: When did you change your opinion on Corning [GLW]? Didn't you say buy a couple weeks ago?
We changed our mind right after the move from $19 to $23. You have to stay tuned.
Question: What is your opinion on Avenue A, Inc. [AVEA] and BroadVision, Inc. [BVSN]?
No opinion on Avenue A; the stock is off our radar at $1.33. BroadVision -- early buy point could be December 2001, but we have no interest right here.
Question: What is your opinion on OMI [OMM], Frontline Ltd. [FRONY] and Stelmar Shipping Ltd. [SJH] and are they a buy, sell or hold?
Frontline looks interesting; we think you're on the right track with this stock. The base is $12 to $14, and the recent spike to $24 is a little excessive. So what? We would buy here and certainly on any break towards $15 to $16. Expect some violence, but this looks like a strong buy. Stelmar also looks very positive, with a solid base at $12. Not much history, but we would do the research and try to buy at current numbers and on any further weakness. It also will be violent and thin, but make certain you do your fundamental research before you dive into this one. Please see the transcript later today or early tomorrow for my comments on OMI.
Question: What is your opinion of Valero Energy Corporation [VLO] and Tesoro Petroleum Corporation [TSO]?
Valero is a strong buy. We like this break of $40 and are very willing to accumulate these numbers. Intermediate price objective of $65 to $70 in the first quarter 2002 is our guess. That has the potential for a 50 to 60 percent move. Tesoro is also looking very positive. We like this consolidation from $15 1/2; we expect a break of $12, currently $13.45. Price objective, mid-$20s to low $30s. In the oil well equipment area, Newpark Resources [NR] is a buy here at $11.60 and a strong buy on a break of $10. Trico Marine Services, Inc. [TMAR] had a very nice consolidation from $17, currently $11.10. Look for the break of $10 to buy. Weatherford International, Inc. [WFT] at $54 is probably a buy here. Baker Hughes Incorporated [BHI], the same. Ditto McDermott International, Inc. [MDR] at $12.35. We like a little cheap stock, OMNI Energy Services Corp. [OMNI], in the oil service area. The president killed himself in a private plane and tons of money went into the company reducing debt. Too bad for the president, but good for the shareholders. Accumulate in the low $1 area.
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