Tech Talk, Buzzing!>
Tech talk could keep sector buzzing
AOL, Microsoft, MCI WorldCom slated for conference
By Cecily Fraser, CBS MarketWatch
Last Update: 5:41 PM ET Sep 26, 1999
NewsWatch
SAN FRANCISCO (CBS.MW) -- Technology stocks could be buzzing
next week as Banc of America Securities opens its 29th annual investment
conference on Monday.
The San Francisco meeting of technology,
life-sciences, retail and other companies, formally
known as the Montgomery Securities conference,
is one of the biggest investment gatherings of the
year. Two hundred and thirty companies are
expected to attend, giving them the opportunity to
talk to money managers about the quickly
approaching earnings season.
John Skeen, director of portfolio strategies and
chief market strategist at Banc of America
Securities, said he's looking for the bulk of upside
earnings-surprise candidates among tech stocks.
See Thom Calandra's StockWatch.
That's a reassuring prediction for the shaky tech
group, which plunged during the week and saw the
Nasdaq Composite Index tumble to its fourth worst
one-day point decline on Thursday.
"The degree to which we've had this sell-off . . the
conference will serve to reassure investors with
respect to technology," Skeen said.
Several key high-profile media shares could be moving on
conference-related news, as well. See related story.
Also slated for next week in San Francisco is the Volpe Brown Internet
and Communications Conference. Beginning on Tuesday, the two-day
gathering will host just under 100 companies, addressing the rapid growth
of the Internet and expansion of communications infrastructure.
"We've integrated Internet and communications as an investment
opportunity and that's absolutely key because the same underlying
consumer demand trends are driving both industries," said Peter Rogers,
director of research at Volpe Brown Whelan & Co.
Couldn't have come at a better time
Banc of America Securities will kick off the week with presentations on
Monday from online book retailer Amazon.com (AMZN: news, msgs),
chipmaker Motorola (MOT: news, msgs), and software giant Microsoft
(MSFT: news, msgs), among others.
Skeen said he is expecting Microsoft's presentation to be "very
interesting." On Thursday, Microsoft President Steve Ballmer stirred up
some trouble for the tech sector by saying that technology stocks are
overvalued, including those of his own company.
"It's (conference) timely from the standpoint that investors are a little
spooked here by Ballmer's comments, as well concern about the Fed,"
said Skeen. It's given a little pause here in the last week, and given
investors an excuse to get nervous and take profits."
Semiconductor companies are also expected to generate some interest in
the aftermath of the devastating earthquake in Taiwan, where many chip
and chip-equipment makers have production plants. At Banc of
America's conference, Micron Technology (MU: news, msgs) will present
Monday with Teredyne (TER: news, msgs), Novellus (NVLS: news,
msgs) and others to follow.
MCI WorldCom (WCOM: news, msgs), which is reportedly in talks to
acquire Sprint and its wireless business, is on tap for a presentation
Tuesday. See related story.
Cameos
Also scheduled to appear during the week at the Banc of America
Securities meeting: AT&T (T: news, msgs); Gateway (GTW: news,
msgs); Lycos (LCOS: news, msgs); E-Trade (EGRP: news, msgs); Dell
Computer (DELL: news, msgs); America Online (AOL: news, msgs),
MCI WorldCom (WCOM: news, msgs) and Cisco Systems (CSCO:
news, msgs).
Tim Koogle, chief executive officer at portal powerhouse Yahoo (YHOO:
news, msgs) will address fund managers and analysts during a luncheon
Monday.
Meanwhile, at the Volpe Brown conference, Qualcomm (QCOM: news,
msgs) Chief Executive Officer Dr. Irwin Jacobs will help to kick off
activity as the keynote speaker Tuesday.
A third conference scheduled for the week in San Francisco is the Jupiter
Communications Financial Services Forum, which will feature keynote
speeches by Merrill Lynch Vice Chairman John Steffens and Visa
International Chairman and CEO Malcolm Williamson.
Cecily Fraser is an online reporter for CBS MarketWatch.
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