John,
I totally disagree. The Magellan manager MUST correct the earnings problems very quickly or risk people pulling their money out. The entire change may take a year, but I bet Stansky will make some major moves very quickly. I believe the reason people get into funds and the market is for the large return on investment. If Magellan, or any fund, performs poorly I would predict it would not be long for the world. The resignation of Vinik will focus public attention on the fund, and those that were not aware that the return didn't match the S&P over the first part of the year will certainly be aware of it now. I'll bet there are a ton of phone calls to Fidelity over the next couple of weeks. If I were Fidelity, I would be very concerned.
As far as CSCO is concerned, I would not necessarily wait for the drop. Following is an extract from this mornings Money Daily.
Yet according to Zweig, Stansky tends not to pick sectors, as
Vinik does, but selects individual stocks -- a style that may
work better with a big fund. "It's easier to pick individual
stocks because if you pick a loser, you're only off on 1% or
2% of the fund. By picking sectors, Vinik was taking big bets
and risking big losses."
Stansky's top 10 holdings at Fidelity Growth Company are
General Electric (NYSE: GE), Federal National Mortgage
Association (NYSE: FNM), Philip Morris, Oracle (NASDAQ:
ORCL), Citicorp (NYSE: CCI), US Robotics (NASDAQ: USRX),
Cisco Systems (NASDAQ: CSCO), Chrysler (NYSE: C), Lowes
(NYSE: LOW) and American Express (NYSE: AXP).
If Stansky has had excellent luck with the above stocks, and he picks them individually, do I believe he'll return to the CSCO well soon? You betcha!!!!. By the way, I might put a couple of bucks into some of the other tech issues above as well. -Keith- |
