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Non-Tech : Invest / LTD -- Ignore unavailable to you. Want to Upgrade?

To: drsvelte who wrote (12420)	3/9/2000 6:34:00 PM
From: SJS	Read Replies (1) \| Respond to of 14427

Thanks doc. I am getting ready for earnings (see below). VTSS also just got a 140 price target/upgrade. ______________ A quiet correction taking place within several sub-sectors of tech. For example, within the genomics group, many issues have slumped 20% or more in just the past two sessions. It's price action such as this that gets us excited... Always less difficult to buy stars on the dip (once they've attained that status), than to identify them in advance. Who knew that an unprofitable company, with sluggish revenues, such as Protein Design Labs (PDLI) would put together a 3-month, 500% run. But with stock now peeling off its highs, those wanting into the genomics sector are given an opportunity to pick up shares at a substantial discount to levels traded just a few days ago... In no way are we recommending taking a position in PDLI or any other biotech stock. The point is that every few days at least one hot name shows up that has experienced a 15%-20% correction from its highs. If you have confidence the stock will continue to be a market leader, then that is when you should be looking to buy -- not when the issue is the the second or third day of a spectacular move. The problem with groups that aren't driven by earnings (such as biotechs) is that it's almost impossible to predict when the next catalyst will present itself. The group is propelled by deal announcements, FDA rulings and analyst upgrades... Most telecom equipment and semiconductor companies, on the other hand, are driven by the numbers that show up on the top and bottom lines... Pretty much a given that most of the top names will obliterate quarterly forecasts again this quarter (due in large part to the low-balling of estimates that has become standard practice in the analyst community)... Playing the earnings game has paid big dividends for investors over the past several quarters. If you look at the charts of some of the market's favorite tech stocks, you will see powerful upswings in the weeks going into earnings. By the time the numbers are released, the issues are often trading at or near new all-time highs, up 30% or more over a period of 2-3 weeks. With this in mind, going into the April earnings season we would begin searching for telecom and semi names which: 1) are known for delivering significant upside surprises; 2) have come down 20% or more from their 52-week highs; 3) have a history of rallying in response to earnings