not good for short?
DJ UBS Strategist Says Tech Turnaround 'A Ways Away'
07/03/2002
Dow Jones News Services
(Copyright © 2002 Dow Jones & Company, Inc.)
NEW YORK (Dow Jones)--Pip Coburn, global technology strategist at UBS Warburg, said a turnaround in the tech sector is still "a ways away."
"We just put out a note this week calling it the 'Endless Summer,' so it's not the end of it," Coburn said in a CNBC interview Wednesday.
Coburn believes it is still too early to guess when the comeback might be. He advises staying away from companies that "used to be called blue chips" but have fallen in price recently.
"Don't get sucked into Sun Microsystems (SUNW) just because it's cheap," he warned. Similarly, he does not advise buying shares of Nortel Networks Corp. (NT), L.M. Ericsson Telephone Co. (ERICY), or Hewlett-Packard Co. (HPQ).
One of Coburn's top picks is Electronic Arts Inc. (ERTS), which he said has "stellar" fundamentals.
He also likes Cisco Systems Inc. (CSCO), which he praised for its management. The company has been going through many of the same difficulties as others in the industry, but management is taking care of problems very quickly, he said.
Accenture Ltd. (ACN) and Activision Inc. (ATVI) are two other top picks.
-By Ellen Sheng, Dow Jones Newswires; 201-938-5176
(END) DOW JONES NEWS 07-03-02
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