STOCK PICKER SUNDAY
Hello Victor, still recovering from the Friday night's special on
COMPAQ and thinking about how to play it in the next few days. As
shown by differing views, it is going to be very difficult to play
COMPAQ itself right on Monday. Clearly they will be collateral damage
to whole sector and I see two levels:
a) Buy on weakness clear winners: CSCO, SUNW, MSFT and INTC.
Of this four, I can't imagine big price gaps on the first three so
they are only a hope. INTC is interesting because it will be associated with the PC sector and will have some damage no doubt. I
inted to buy INTC aggresively on weakness based on compelling value,
stock split effective on Monday morning, earning release on Tuesday,
earnings whisper a@ $1.15 i.e. 5% above consensus and, guess what,
Kumar's strong support on Friday (he used to work at INTC and said earnings will be better than expected)
b) Buy on weakness early recovery plays: ORCL and COMS. Both stocks
are among the five most oversold in the Morgan Tech Index (which includes PSFT, CPQ and MU) but were gaining momentum on Friday after clear double bottoms on Wednesday and Thursday. They have nothing to
do with CPQ.
I am not sure how to play DELL. At a certain level it may be a good short
term play but frankly I need to understand more the reasons behind CPQ's failure.
You have all my support re the kelleys and the piccolinos of this world. I have no problem with shorties but a big one with little men that did not show respect and were laughing at other people's miseries.
Nice afternoon here in central London. |
