DELL - courtesy of thestreet.com (Tom Marsico left Janus 20 to run his own funds since 1997. His 2 funds MFOCX up 38% ytd, MGRIX 28% ytd)
Under The Hood: Tom Marsico Has Sold
Dell, Likes Ford and Pfizer
By Brenda Buttner
Special to TheStreet.com
6/26/98 3:16 PM ET
When a manager who says "We buy our companies for life"
decides to sell one, you should listen. When he can boast a
record among the best in the business, tune in with both
ears.
Within the last three weeks, veteran stock-picker Tom
Marsico has sold his entire position in Dell (DELL:Nasdaq),
a long-time top holding for him both when he was at Janus
and in his new and very hot Marsico Focused and Marsico
Growth and Income funds.
"The average selling price for their computers was going
down at a faster rate than the company has anticipated," he
says. "The problems in Asia mean that gross profits are
going to be less. The fundamentals have changed."
Marsico sold his position reluctantly. "I could be making a
mistake," he admits. "They are a fine company, very good
people, great managers, but we just think that the
environment we're entering creates problems for them and
the industry."
So where's the guy with the No. 1 and No. 3 large growth
funds year to date putting all the new money chasing his
recent stellar performance? Marsico continues to be a big
fan of Ford (F:NYSE), despite its recent run-up. "It spun out
Associates First Capital [AFS:NYSE], announced major
cost-cutting in its automotive business, and I think you're
going to see a major share repurchase. The balance sheet is
so strong."
He also is increasing his big stake in Pfizer (PFE:NYSE).
"Viagra is going to be a much larger stock than people
anticipated. The market potential is enormous -- and is not
factored into estimates."
Gulfstream Aerospace (GAC:NYSE) is another favorite.
"When that stock blossoms, it could go up 100%." He is
also high on United (UAL:NYSE). |
