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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: almaxel who wrote (32377)	5/27/2000 2:05:00 PM
From: almaxel	Read Replies (3) \| Respond to of 64865

Battipaglia optimistic bull market will resume By Barbara C. Costanza, CBS MarketWatch Last Update: 2:21 PM ET May 26, 2000 NewsWatch Latest headlines LOS ANGELES (CBS.MW) -- "I remain optimistic that the bull market in U.S. equities will resume as the year progresses, achieving higher highs by year-end," predicted Joe Battipaglia, chief investment strategist for Gruntal & Co. The investment strategist believes the Fed is done (raising interest rates) and that there will be a positive rally soon. Battipaglia continues to be bullish in his outlook for the full calendar year of 2000. In any case, having extra cash on hand could leave an investor in a prime position to pick up some bargains in a rally. The strategist, who has been bullish on the market for some time, based his expectation on the year-over-year core inflation rates at the retail and wholesale levels -- the so-called CPI and PPI -- and their impact on corporate profits. The CPI and PPI have risen 2.2 present and 1.3 percent, respectively. Both readings are in line with levels seen between 1992 and 1997, according to the analyst, but are up slightly from 1998-1999, when the emerging market crisis threatened global recession and deflation. "My year-end targets remain 12,500 on the Dow Jones Industrial Average, 1,625 on the S&P 500 and 5,500 on the NASDAQ composite," said Battipaglia As for those companies burning cash and showing losses, there's still an embedded value in some of these companies, according to the strategist. "These stocks will be driven by liquidity and sentiment, which at present is guarded," said Battipaglia. However, a host of marginal companies have run out of time and money, noted Battipaglia. It wouldn't matter to us, we made our "Internet play" by investing in companies like Sun Microsystems (SUNW: news, chart), EMC (EMC: news, chart) and Oracle (ORCL: news, chart), not the Amazons and AskJeeves of the world. Ralf