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Technology Stocks : Nuevo Grupo Iusacell (CEL) -- Ignore unavailable to you. Want to Upgrade?

To: Dennis Roth who wrote (72)	6/29/2000 7:47:00 PM
From: Rob Preuss	Read Replies (1) \| Respond to of 206

Thursday June 29, 7:19 pm Eastern Time Salomon offers post-election Mexico portfolios MEXICO CITY, June 29 (Reuters) - Salomon Smith Barney's chief Latin America strategist on Thursday offered investors two model portfolios of Mexican stocks, each based on differing outcomes of Sunday's presidential vote. Salomon's Geoffrey Dennis set out an aggressive portfolio of stocks with strong earnings and high liquidity should the election process proceed peacefully with no serious accusations of fraud. If the election is noisy and disputed, Dennis offered investors a defensive portfolio of more export oriented, cheaper stocks. Without forecasting the winner, Dennis noted that a clear win by Francisco Labastida, candidate of the ruling Institutional Revolutionary Party (PRI), would help the market hold steady and perhaps extend its rally. Similarly, a clear win by opposition contender Vicente Fox would also leave the market stable. In the case of a narrow Labastida win, which would likely be challenged, investors should be ``very defensive,'' assuming selling stock is possible in such circumstances, Dennis said. ``In the strong rally of recent days, the hope has developed that the election should pass calmly,'' Dennis said in a research note. ``Our latest view is that ballot fraud on the day should be limited, with the Federal Electoral Institute (IFE) validating the result of the vote, although perhaps being critical of some of the election procedures.'' Opinion polls have shown Fox has a chance to beat Labastida, who's party has ruled Mexico for 71 years. Financial markets have remained stable leading ahead of the July 2 vote, but trading volumes have thinned out as investors wait on the sidelines amid uncertainty surrounding such a tight race. Dennis' aggressive portfolio would include companies such as telecommunications leader Telefonos de Mexico (NYSE:TMX - news), cellular phone company Grupo Iusacell SA de CV (NYSE:CEL- news) , banking groups Banacci and Banorte , retailers Elektra (NYSE:EKT - news) and Soriana, construction company Corporacion Geo and steel maker Hylsamex. The defensive portfolio includes paper products company Kimberly-Clark , silver and bismuth producer Penoles , copper company Grupo Mexico , financial concern Santander-Mexico , cement companies Cemex and Apasco , homebuilders Hogar and Consorcio ARA , retailer Walmex , steel pipe maker Tubos de Acero de Mexico and Coca-Cola FEMSA (NYSE:KOF - news).