t36, " should I buy Vivus now? Here is yesterdays' write up from WSJ .
I edited /shortened it. Pay particular attention to the ACAPULCO example.
* Heard on the Street
Bargain Hunters Dipping Into the Tech Sector
May Need to Do a Bit More Bottom-Fishing
By Suzanne McGee
Staff Reporter of The Wall Street Journal
* 01/05/98
The Wall Street Journal
(
Is the flurry of bargain-hunting in battered technology stocks the
first sign of a turnaround?
Even some of the most aggressive bottom-fishers themselves aren't
betting on it. They're carefully targeting their buying, rather than
counting on a resurgence in overall demand to eradicate inventory gluts
and restore pricing power.
"The jury is still out on where these stocks are going," says Ciaran
O'Kelly, technology stock trader at Salomon Smith Barney. "There's
definitely been a lot of hunting for bargains, but . . . this bounce is
far from impressive."
.
But traders say some stocks are showing the first fleeting signs of a
recovery in the wake of a sell-off sparked by disappointing earnings,
demand worries and year-end tax-related selling.
Jon Schoolar, manager of the AIM Weingarten fund, believes investors
have oversold many stocks. He expects technology weighting in his $9But I believe the top line in some areas
can grow more robustly than the market now gives it credit."
**********************************************************
For years, buying most technology stocks was prohibitively expensive
for Tony Hitschler, president of Wilmingtonbased Brandywine Investment
Management and a disciplined value investor.
Now he's snapping up stocks like diskdrive maker Seagate Technology,
down 51% in 1997 and trading at only 7.4 times earnings.
"Of course, they'll report a loss next quarter," he says cheerfully. "But you've got to play this group like the cliff divers in Acapulco; you dive in as the waters recede and you think you're heading for the rocks, but by the time you finish your dive, the water's back."
But few investors are ready to take that kind of leap.
Bargain hunters also face short-term risks as the next round of
quarterly earnings news begins late this week with reports from Motorola
and Seagate.
Some traders confess to being more on edge than they've been in
years. "A lot of investors, much of the smart money, is clinging to the
sidelines," says Mr. O'Kelly.
I0607 * End of document.
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Think about it . I have to go now but I will get back to your question later. All I can tell you noe is that I bought Vvus from
10 - 12.4 and I am still long at present.
TA |
