Stock Chat: -
time to go non-tech. John Murphy's article in this week's barrons points out what should be obvious- strong sectors are retailing and probably oil service. Techs have been bruised and it seems that the sector is due for more duress. Other strong sector (my picks) are telephone utilities and airlines and cable/entertainment.
Telephone Utilities: I bot USWest at 49, is now 53.50 and pays over 4% (for those who hold long enuf to get dividends). FRO is a long term hold from 22.50, now 27.50 or so. In fact all the RBOC look very attractive. still. CSN - Cincinnati Bell looks like a plum to be picked ala SNG (Southern New England). NXLK - McCaw's CLEC moved last week from 25 to 35 (no, i didn't own it, was waiting for 23.50).
OIL SERVICE - Barrons' mentions HAL, BHI, among others. GLM looks attractive to me. Also like energy companies perse - OXY - Occidental Petroleum is going thru some interesting transformations, including stock buyback and focusing on main businesses. Perhaps Paul, Sam or Marion could give us better ideas in the energy sector.
CABLE/Entertainment: Cable - TCOMA and UMG have been very strong, and still look attractive. ATHM- which can offer cable modem internet service to half the free world jumped 5 or 6 points on friday, rumors of AT&T deal plus potential of cable modem over phone modem. CBS remains my most favorite stock. EVerything looks go for this co - focus, radio and TV biz, cable ventures, ratings increase, stock buyback - and Howard Stern. TWX - Time Warner - looks in the early stage of mega move. Stock based around 40 forever (yes, charts do go back longer than 90 days) and has been in a beautiful uptrend for last year or two. Most powerful entertainment company in the world, in my opinion - HBO, Cable, Warner Bros, Books, and Ted Turner. TWX go after CBS? - win, win.
Airlines: Love LUV, Alaska Air is cheap at 57 on PE and future earnings potential.
RETAILING: haven't done much work in this sector. Have owned WMT for several years, figure its the best. KM made impressive breakout, still hesitant to trust it, been burnt too many times. S is mentioned by Murphy, stock handled negative comments from company and is probably a good bet at this point. RBK and NKE the sneaker companies have a lot more upside than downside here, it seems to me. JCP? CLE? JNY? anyone have good ideas on this sector.
INTC, DELL, MSFT, CPQ, SEG, SUNW, BAY, ASND (I wuv you webbie), all great companies, all look less attractive given the earnings warnings that INTC, MOT and CPQ issued this week. Still great sector, but think will be under-performing sector next 3-6 months. Like UIS the best of any techs i see, and maybe, gasp, forgive me susie, NOVL.
good luck all. larrry |
