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Technology Stocks : Alcatel (ALA) and France -- Ignore unavailable to you. Want to Upgrade?

To: zbyslaw owczarczyk who wrote (1914)	6/2/2000 7:29:00 PM
From: zbyslaw owczarczyk	Respond to of 3891

A.G. Edwards' Goldman: Stock Market Rally Is No Fad By DESIREE J. HANFORD ST. LOUIS -- This week's robust upward activity in the stock market is no flash in the pan, according to Al Goldman, chief market strategist at A.G. Edwards & Sons Inc. Goldman told Dow Jones Newswires that the market has been undergoing a stiff correction for the past three months, noting that the typical Dow Jones Industrial Average stock and average Standard & Poor's 500 Index stock are well off their highs. In addition, Goldman said fear in the market had grown to substantial levels as investors were concerned that the Federal Reserve's interest rate increases would derail the booming economy. He said that economic data released this week, including durable goods orders, housing starts and auto sales, is evidence that the economy is starting to slow. "Today the crowning glory is the jobs data," he said. " We have an economy that has started to slow down and hopefully it's a soft landing." Goldman said he doesn't expect the Federal Reserve to raise interest rates when it meets later this month. He said given what the economic data have shown this week, Fed Chairman Alan Greenspan would likely run into "slings and arrows" when he testifies before Congress in July if the Fed raises rates later this month. "I think we're now seeing the first rate hikes kick in," Goldman said. "The latest ones haven't even kicked in yet. I think the Fed has to be wondering if they overdid it." Goldman is looking for the Dow to close the year at 12500, the S&P 500 to be at 1700 and the Nasdaq at 5500. Given the current economic backdrop, Goldman said he likes the technology and Internet sectors. Stocks he likes in those industries include Applied Materials Inc. (AMAT), Dell Computer Corp. (DELL), Intel Corp. (INTC), Cisco Systems Inc. (CSCO) and America Online Inc. (AOL). "My advice is to stick with the biggest and the best," he said. "This market will be more discriminating than the last run." Investors have gotten a few doses of news this week that may be pointing to the economy finally slowing down. Earlier Friday, the Labor Department said the U.S. unemployment rate rose to 4.1% in May from 3.9% in April, the first time the rate has risen in three months. Nonfarm payrolls rose a smaller-than-expected 231,000 jobs, and average hourly wages increased just 0.1%, or one cent, to $13.65 in May. On Thursday the National Association of Purchasing Management's May survey showed slowing growth in manufacturing activity and wholesale prices. Investors have seized upon the economic data and pushed both the DJIA and the Nasdaq Composite higher this week. The Dow closed up 129.87 points, or 1.23%, on Thursday to 10652.20. The Dow was recently trading at 10813.95, up 161.75 or 1.5%. The Nasdaq gained 181.59 points, or 5.34%, on Thursday to close at 3582.50. It was the Nasdaq's seventh-largest percentage increase ever. That came on the heels of the Nasdaq gaining 7.94% on Tuesday, its biggest one-day percentage gain ever. The Nasdaq was recently trading at 3777.16, up 194.66, or 5.4%. interactive.wsj.com

To: zbyslaw owczarczyk who wrote (1914)	6/2/2000 10:33:00 PM
From: pat mudge	Respond to of 3891

Supercom is a big show for ALA and I wouldn't be surprised to see lots of press releases. Congratulations on the stock price --- if anyone deserves to win on this one, it's you. I'm only benefiting through SDL's exclusive with ALA. Feel as though we're cousins. :) Pat

To: zbyslaw owczarczyk who wrote (1914)	6/3/2000 10:44:00 AM
From: Tunica Albuginea	Respond to of 3891

Congrats from me too ZO; Here's Barron's June 5 on Alcatel from Telecommunications yearly roundtable: LOOK FOR THE SILVER LINING -- COVER STORY "Our fifth annual International Telecommunications Forum finds plenty of hopeful signs in the gloom of the unremitting market selloff. " interactive.wsj.com interactive.wsj.com Here for his fifth straight go at it is Castro, the ranking member of the Forum and senior portfolio manager at Montgomery Asset Management, where he manages $4.2 billion across five funds. He was accompanied by Parlett, his longtime research analyst, newly named co- manager on Global Communications and a specialist in telecom services. interactive.wsj.com Telecom Forum panelists, from left: Castro, Gabelli, Cahill and Parlett =============================================== Q: Any more picks? Castro: We have three more. The first is Alcatel. Through a restructuring and through the acquisition of companies, they have positioned themselves on the Internet and in optics. On the enterprise and consumer side they are a premier provider of DSL equipment. In networking, they are the premier provider of digital loop access and the equipment needed to connect cable-TV subscribers into 'Net technologies. All together, you get a company at the forefront of what people are demanding. Q: Is Alcatel overlooked because of its past problems? Castro: Overhated is more like it. But people are turning to the story and the company is delivering. It's at 52 euros and our target is E76, based on the sum of its parts. But earnings growth is strong. In 1999 they made 70 euro-cents. In 2000, we expect E1.33 and in 2001, E1.75. Q: How do the multiples stack up against its competitors? Castro: Cheap. Alcatel trades at 30 times 2001 earnings. The group trades at an average 35 times. Nortel trades at 60 times. Fujitsu and NEC trade more like 50-60 times.