Loomis Sayles sees sunw leading in downside
Loomis Sayles Partner: Still Opportunities In Tech Sector
Dow Jones Newswires
NEW YORK -- A trend favored by the old saw "sell on strength, buy on weakness" will continue
in the technology sector, according to Loomis Sayles managing partner Phil Schettewi.
"There are plenty of opportunities, but some companies have gotten ahead of themselves,"
Schettewi said in an interview with CNBC Thursday.
"I've been scaling back (in the technology sector)." he said. "You have to be somewhat more
selective in this sector. I think there are some tremendous opportunities but some of the names got
quite bid up in price."
An indication that there is a cyclical move back down in the technology group, Schettewi said, is
that "when good news comes out, the stocks don't go up."
Schettewi sees Sun Microsystems Inc. (SUNW), Texas Instruments Inc. (TXN) and Applied
Materials Inc. (AMAT) leading in the downside. Texas Instruments is susceptible to some profit
taking, Schettewi said.
He thinks Dell Computer Corp. (DELL) is "attractive" in the "low 70s to high 60s." The stock
closed at 83 Thursday.
He likes companies that will benefit from information technology spreading out and an increasing
demand for bandwidths. His picks of such companies include Loral Space & Communications Ltd.
(LOR), Electronics Data Systems Corp. (EDS) and MCI Worldcom Inc. (WCOM).
Schettewi predicts that some Internet companies that enjoyed early success, such as Amazon.com
Inc. (AMZN), eBay Inc. (EBAY) and Ubid Inc. (UBID), will re-emerge only to "blow up again
and then severely come down in the next several months." |
