Financial Stocks Picked by Morgan Stanley's
Wien on 'Rukeyser'
Bloomberg News
April 9, 1999, 8:38 p.m. PT
Owings Mills, Maryland, April 9 (Bloomberg) -- Citigroup
Inc. and First Union Corp. are among the financial services
companies recommended by Byron Wien, Morgan Stanley Dean Witter's
chief U.S. portfolio analyst, on Public Broadcasting System's
''Wall Street Week with Louis Rukeyser.''
Wien termed himself a ''nervous bull'' about the U.S. stock
markets as the Dow Jones Industrial Average trades above 10,000.
Financial stocks, some Internet-related issues and
telecommunications stocks may do well in coming months, he said.
''I think the market is probably going higher, but it's
going to have trouble making progress from here,'' said Wien,
noting that only a few stocks are driving markets higher. He said
some material stocks such as papers, chemicals, aluminum and
copper may also be good investments in coming months.
Wien also recommended American Express Co.
Among Internet-related issues, he mentioned Cisco Systems
Inc., Intel Corp. and Microsoft Corp. Other stocks such as MCI
WorldCom Inc., Time Warner Inc. and Clear Channel Communications
Inc. might warrant investor study, Wien said.
He said he is apprehensive about some Internet stocks such
as America Online Inc. and Amazon.com Inc. because of their high
valuations. Some large multinationals also may have trouble
delivering fundamental performance, including Coca-Cola Co. and
Gillette Co., Wien said.
Panelists appearing on Rukeyser generally agreed Compaq
Computer Corp.'s first-quarter warning may drag down personal
computer makers when markets open Monday. Compaq said after the
market closed that it expects earnings of 15 cents a share, lower
than the 31 cents analysts expected, because of falling prices
and demand.
The panelists agreed Compaq may be a buy if its shares
tumble far enough. Alan Bond, president of Bond, Procope Capital
Management, said the company's shares are worth buying under 30.
Barbara Marcin, a Citibank senior portfolio manager, said
paper and chemical stocks may warrant a look as the global
economy improves. Marcin said she also likes the newspaper
sector.
Gap Inc. and Pfizer were among stock picks mentioned by John
Kim, Aeltus Investment Management Inc. president. |
