COMS can take off big time like IBM. COMS is a big bargain NOW!
all imo. Look for COMS to appreciate significantly tomorrow, see related article below:
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Goldman Sachs' Cohen keen on value stocks
By Al Yoon
WALTHAM, Mass., May 26 (Reuters) - Value stocks that have lagged the market for two years remain cheap relative to the darling large growth firms and should continue to turnaround, Goldman, Sachs & Co. stockpicker Abby Joseph Cohen said on Wednesday.
Without naming companies, the bull market guru, said the disparity in relative value between the large capitalization growth category and stocks in the small- and mid-cap value genre remains wide.
''We're very pleased to see what's happened because the value is there,'' Cohen said after addressing the Massachusetts Pension Reserves Investment Management Board's Annual Client Conference at Bentley College.
''But (other than disparity in relative value) there is a catalyst ... and that's that investors are feeling better about the (U.S.) economy,'' said the managing director and co-chair of Goldman Sachs Investment Policy Committee.
Growth stocks, or companies that are expected to outperform the market, have lost some luster after two years of strong gains. Stocks that are seen as bargains, or value stocks, have outperformed growth shares since April.
Investors may feel better about these value stocks because global economies have improved, albeit slightly, boding well for the United States' economic outlook, Cohen said. This helps value and/or ''cyclical'' stocks, which tend to rise and fall on expectations of economic health.
Cohen said corporate profits should be ''great'' in 1999 following disappointing performances for many companies last year.
''1998 was not a great year for U.S. companies because of what was happening in the global economies ... but when you look at those companies most affected by the (global woes) they are already doing better in 1999,'' she said.
Reflecting that optimism, she said upward revisions of 1999 U.S. corporate earnings estimates are running at twice the pace of downward revisions.
Asked about the Internet craze, she said some of the best plays were companies that provide infrastructure and support for e-commerce like IBM,(NYSE:IBM - news) EMC Corp.(NYSE:EMC - news) and 3Com Corp.(Nasdaq:COMS - news)
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