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To: limtex who wrote (72720)	5/29/2000 2:08:00 PM
From: Ruffian	Respond to of 152472

The future presents opportunity Retired broker and author gives insight on market By Barbara C. Costanza, CBS MarketWatch Last Update: 11:52 AM ET May 29, 2000 Share your thoughts LOS ANGELES (CBS.MW) -- No risk is the biggest risk of all, according to William M. Buchsbaum, author of "The Little Book of Big Profits" and retired veteran of the financial world. However, a retired investment adviser never really retires from watching the stock market. So CBS MarketWatch.com talked with William M. Buchsbaum, to get his take on stock picking in this volatile time. Can you tell us what the risk is in this market? Buchsbaum: From here on out I think the risk is minimal, there's not much down side left. I think the future is huge and presents a great opportunity, especially in the NASDAQ. Back in 1996, you wrote a book called "The Little Book of Big Profits" which stressed a thorough analysis of a traditional company's financial report and balance sheet. What can you tell investors to look for who want to invest in internet stocks? Buchsbaum: I think the most important thing to look for is the best companies with the greatest potential for revenue and earnings growth. I would prefer buying companies that are still doubling and tripling their revenue every year. What industries do watch closely? Buchsbaum: I love technology. I think the two important sectors out there right now are business to business and wireless. A company cuts out its middle man and sells directly to other businesses. That improves profit. B2B will explode. In 1999, revenue from business to business on the internet was about $200 billion. That number is expected to grow to $1.5 trillion by 2003, which is about a 300 percent annual growth rate for many of these companies. And many of these stocks are down 60 to 70 percent from their highs. What stocks have you got your eye on? Buchsbaum: Some of my favorite companies on the B2B side of things are Ariba (ARBA: news, msgs), and Broadcom (BRCM: news, msgs). Then there's Portal Software (PRSF: news, msgs) and Teradyon (TER: news, msgs) which have great opportunity ahead. On the the wireless side, there's JDS Uniphase (JDSU: news, msgs), which has great fiber optics opportunity. Qualcomm's (QCOM: news, msgs) another one. The company is about to announce a big agreement with China. Versign (VRSN: news, msgs) and S1 (SONE: news, msgs) are vital companies that still have strong growth ahead of them. What's your take on the market's volatility? Buchsbaum: As for the overall market, I believe we'll see a summer rally, not sure exactly when though. We'll make it all the way back up to between 30 and 35 percent by year end. I think we'll get to 4000 for the NASDAQ by the end of the year. What do you believe the Fed will do going forward? Buchsbaum: The Fed's pretty close to being finished. If Greenspan isn't done yet, he'll raise the rate no more than 25 to 50 basis points. He'll be done by August or September. There are already signs of the economy slowing down. Oil and wages are two major items that breed inflation. Oils gone up and labor markets have tighten. I think future raises are unnecessary. But on the other hand if he does raise the rate, I think the rate will go down by the end of year or beginning of next year. What are your thoughts on a company's "cash-burn rate," especially a company reporting losses? Buchsbaum: Most of the internet companies have no debt. And as long as these companies continue to increase their revenue issue of burn rate kind of gets knocked to the back of the bleachers. When it comes to investing everything is important. But if you had to pick one, what would be the most important thing an investor should understand? Buchsbaum: The most important thing an investor should know is there is risk in the market. Many investors are looking beyond risk and not worrying. If investors had stop orders to sell after a 10 or 15 percent drop, they'd be in cash by now. Ready to buy up in a rally. What would be your suggestion to an individual investor? Buchsbaum: You don't want to diversify too much. So, what I do is diversify within an industry I believe is growing. Technology is the place to be. It's here to stay. It's explosive and exploding as we speak. Barbara C. Costanza is earnings editor for CBS MarketWatch. Refer this article to a friend Printer friendly format Backflip this article to find it again For more breaking news, visit our Front Page. Also, search our news archives: Ticker Keyword (For more options use our Advanced Search) Marketplace BizBuyer.com Intelligent purchasing solutions for your business. AnnuityScout.com Learn about, compare and buy annuities. WingspanBank.com Apply now! Simplify your life. Thinking about a house? Start with Washington Mutual's Power of Yes. 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