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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: nokomis who wrote (55317)	8/10/1999 10:58:00 PM
From: Susan G	Read Replies (2) \| Respond to of 120523

Interesting comments - especially on gnet, dclk, rnwk and stmp from theStreet.com Bully for What? By Aaron L. Task Senior Writer 8/10/99 9:28 PM ET Mounting Evidence SAN FRANCISCO -- Some bulls claimed a moral victory in today's bounce off the lows and expect a rally to ensue. Meanwhile, one of the most bullish strategists on Wall Street is less encouraged, short-term. "If you look at corrections associated with Fed tightening, historically, [those done] in a long-cycle environment to slow GDP, the average correction is about 20%," said Jeffrey Applegate, chief investment strategist at Lehman Brothers. "So I wouldn't say we're done necessarily. If the long bond is going to 6.30% to 6.35%, the stock market is going to go down some more." Furthermore, Applegate observed the S&P 500 is "back to where we were in mid-January." (Indeed, on Jan. 29, the index closed at 1279.64 after closing as high as 1275.09 on Jan. 8. Today, the index closed at 1281.43 after trading as low as 1267.73.) Still, Applegate remains fully invested, as he has been since the first quarter of 1995 -- "we decided a while ago we weren't going to attempt to market-time," he said. But his cautiousness is somewhat glaring given his bullishness and success in recent years. Today's comments follow Applegate's decision late Friday to acknowledge what has become obvious to most market watchers. "We've changed our forecast from no move to a quarter-point hike in the fed funds rate by the Federal Reserve on Aug. 24," he wrote in a research report. Then Again "That afternoon spike in the Internet stocks yesterday was more than a coincidental bounce," Charles Payne, president and chief analyst at Wall Street Strategies, wrote in an email to clients late today. "It was an omen of the possibilities and potential of the overall market. We are convinced that the market wants to trade higher, it just needs a catalyst." "Old-line, white-shoe wirehouses and their big-pocketed institutional investors have just watched the little guy get crushed," Payne wrote. "They could have come to the aid of the average investor, but choose to let them rot in the sweltering Internet selloff. Sort of as a punishment for thinking independently. Once the big boys decide to pick over the carcasses, we could see a quick 20% to 30% reversal in stocks like Go2Net (GNET:Nasdaq), DoubleClick (DCLK:Nasdaq) and RealNetworks (RNWK:Nasdaq)." Payne also foresees a rebound in retailers such as Best Buy (BBY:Nasdaq) and Circuit City Stores (CC:NYSE). For "aggressive" accounts, he recommends Stamps.com (STMP:Nasdaq). But Jack be nimble: As we reported yesterday, Payne recommended Stamps.com last Thursday at 33. Monday, the stock traded as high as 43 1/4 before closing off 12% at 31 11/16. Today, it rose 4.3% to 33 1/8. I'll stick with my Pitney Bowes (PBI:NYSE)-Cliff Clavin personal mail meter, thank you. ("Free is good!")