To: Sir Auric Goldfinger who wrote (8711 ) 7/10/2000 12:53:30 PM From: StockDung Respond to of 10354 Geist strikes again. Dirks recommends ZSUN and NWLL. We all know what would follow;aolpf.marketwatch.com Wall St. Eavesdropper Calling China By Jeff Clabaugh Last Update: 7:56 PM ET Jul 9, 2000 NewsWatch Latest headlines Here’s another pick for a company standing in line to cash in on China’s pent up demand for telecom. This one is New Tel (NWLL: news, chart), a company launched last summer to provide long distance and mobile phones to Australia’s Chinese community. But a new joint venture in China could push this small-cap to new heights, although the stock comes with a warning that you’re investing in a concept. At the InvesTools Web site, John Brobst quotes small-cap advisor Richard Geist as saying a new joint venture with China’s Xinhua News Agency could propel New Tel to a much more lofty status as China’s foremost ISP and Chinese/English-language portal. How big is the potential market? Geist points to research that puts the number of Internet users in China at 12.3 million, but doubling every six months. And online advertising in Asia is growing at a compound annual rate of 76 percent, while e-commerce in mainland China rose 500 percent last year. Says Geist, he’s extremely skeptical of revenue and earnings projections because the numbers are a constantly changing target. And investors should realize they are investing in a concept, but one that has huge potential. And he says that potential is not yet reflected in New Tel’s stock price. Giest calls New Tel an unusual opportunity to enter the Chinese Internet market at a reasonable price. See full story. Watching Computer Associates One of the biggest bombs to drop as Wall Street started the second half of the year came from Computer Associates (CA: news, chart), when it warned it would miss earnings estimates. The news sent the stock down more than 40 percent in one day. That slaughter cost shareholders, and the company, around $12 billion in market cap. But at least one stock watcher isn’t ready to give up on the company. And although he’s not suggesting investors jump right in, he thinks Computer Associates is worth watching for now. At the Internet Stock Report, Tom Taulli writes that Computer Associates’ ills come from two trends. Companies that had been using mainframes for Y2K testing are now using the machines for operational corporate uses. That means less demand for mainframes. And IBM is getting ready to launch a new line of mainframes later this year, so customers are waiting for IBM to make its move. And since Computer Associates develops mainframe software apps, those trends mean a slowdown in business. And those problems will likely last for at least two more quarters. But Taulli says despite the bad news, Computer Associates is still a great company. It has returned from major setbacks before. And the company’s management team is compensated with stock, so there’s motivation to get the price up again. It may take until the end of the year to happen, so Taulli says there’s no need to jump into the stock quickly, but he says it’s one to keep on your watch list. See full story. Box office bust? The summer movie season’s in full swing, but one stock watcher doesn’t think the season is swinging very hard. And while that may or may not have significant impacts on the publicly traded companies that foot the bill for film productions, lack of big summer blockbuster