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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Uncle Frank who wrote (14932)	1/11/2000 7:59:00 PM
From: Rick	Respond to of 54805

The latest dispatches from SSB: "Information Superhighway: The race to rewire the globe rushes on at a frantic pace. The proliferation of Internet and wireless has fed the virtuous technology/telecommunications cycle. As the size of the global networks expands, the demand for new products and services increase, leading to the need for greater bandwidth. The new products and services enable more functionality, attracting additional users, thus perpetuating the cycle. With only a fraction of the world's population "plugged in," this virtuous cycle should continue for the foreseeable future. We believe technology top picks such as Corning, EMC, Flextronics, IBM, Lucent, Microsoft, Motorola, and PMC-Sierra will be prime beneficiaries of the continued technology buildout.... PMC-Sierra: has achieved high double-digit annual sales growth for its networking chips in each of the last three years, with recent year-over-year comparisons around 80%. We expect this scorching pace will be maintained through the next few years, with possible acceleration to triple-digit growth as Abrizio and other new chips layer into the sales mix.... Risks: Investment risks for PMCS include customer concentration and valuation. CISCO and Lucent each account for roughly 15% of sales.... Equity Strategy: While Fed tightening may be used to target the wealth effect, it may initially exacerbate the problem. As rates rise, investors may seek shelter in technology stocks because of their superior fundamentals, improving growth prospects, and abundant liquidity. Therefore, the sector may continue to climb even in the face of higher rates." - Fred