To: HG who wrote (52681 ) 9/19/2000 1:13:02 AM From: Junkyardawg Respond to of 63513 Found this post on another site. I liked it so I am posting it here. Briefing says buy CMRC General Commentary There are times when being right isn't much fun... This happens to be one of them... Briefing.com stood with the minority at the end of August in cautioning investors that rising fuel prices, earnings warning season, (still) high valuations and a lack of leadership would derail the tech sector's recovery rally... That's exactly what has happened, as Monday's retreat brought the Nasdaq back below its July 31st close. The silver lining to the whole mess is that the market is now overstating the bearish case... Could the tech heavy index drift lower over the next several days? Sure... But Briefing.com contends that the additional downside risk is now minimal... We have argued all along that the Nasdaq is range bound (roughly 4300-3300), with the 3800 area representing the middle of the range... Given the myriad of concerns to overcome and the fact that the market was in a period with few natural buying catalysts, we expected the index to slide slightly below the middle of the range to about the 3650-3600 area... One more day like Monday and we're there... Even if the index were to go below this floor, at current prices the near- to intermediate-term risk/reward ratio is much more favorable than it was a few weeks back. Consequently, now is not a bad time to start nibbling at the sector. Fiber-optic, networking, storage, Internet and fibre channel stocks should lead the recovery as they are (generally) holding up best during the retreat. Stocks to watch within these groups include EMC (EMC), JDS/Uniphase (JDSU), Corning (GLW), Network Appliance (NTAP), Brocade (BRCD), Extreme Networks (EXTR), Ariba (ARBA), Commerce One (CMRC), eBay (EBAY), FreeMarkets (FMKT) and Exodus (EXDS)... When you start to see buying in these names (on strong volume), you'll know that the Nasdaq is headed back to the upper end of its range... As sentiment begins to improve, breadth will expand and chip, chip equipment, hardware and software stocks will also begin to participate... From a short-term perspective, chip sector could offer some of the best upside promise as group has been hit especially hard in recent weeks amid earnings fears... If the results turn out to be better than reduced expectations (and we think that they will) there will be some real nice gains to be had.ragingbull.altavista.com