More Bull(ish) on ASND from WSJ
Portfolio Manager Sees Value In Some Small-,Mid-Caps
NEW YORK (Dow Jones)--There is upside potential to be found in
some small- and mid-cap stocks, according to Tim Miller, lead
portfolio manager of the Invesco Dynamics Fund.
Miller told CNBC Thursday that most investors are gravitating
toward the predictability of large-cap stocks as fear of a U.S.
economic slowdown grows, but a clearer economic picture could
spark an upturn in the smaller names.
"If we get some stabilization in Asia, and we can...extend the
visibility of growth in the U.S. economy, that historically is when
small- and mid-caps outperform," Miller said.
Currently, the portfolio manager likes the communications sector,
which he sees benefiting further from international deregulation.
He favors Ascend Communications Inc. (ASND), as well as some
competitive local exchange carriers such as Intermedia
Communications Inc. (ICIX).
PeopleSoft Inc. (PSFT), a maker of client/server business
application software, is trading at a price-to-earnings multiple
roughly equal to its growth rate, a level at which Miller said the
stock historically has been an attractive buy.
Miller's other picks include Intuit Inc. (INTU), Omnicom Group Inc.
(OMC) and Cambridge Technology Partners Inc. (CATP).
Until the ongoing correction ends, Miller said, he is shifting the
balance of his fund more toward his best quality growth holdings.
"When we go through corrections like this, we tend to upgrade the
quality of our portfolio and...establish larger positions in our
favorite stocks," Miller said.
-Ted Kemp; 201-938-5392
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