28-Oct-02
Soundview on Tech Stocks : With recent lofty 32% advance in large cap technology stocks, firm is cautiously optimistic that sector is beginning to sniff out economic recovery, positive estimate revisions, financial momentum and return of positive "user groupthink"; looks for substantial fundamental confirmation of price advance between now and January, but does not view tech stocks as "one-way tickets to paradise" due to upcoming typical fall off in IT spending from Q4 to Q1, rather thinks trading range is being established where valuation, product cycles, stock selection and remembering to take profit will matter again; favors infrastructure spending driven stocks with exposure to better storage and PC demand in Y03, such as IBM, MSFT, SAP, PSFT, HPQ, EMC, TSM, UMC, MU, LSI, NSM, AMAT, NVLS and LRCX. |
