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To: jjkirk who wrote (5422)	9/28/2000 1:37:12 AM
From: jjkirk	Respond to of 13572

Extracted from The Bull Market BioTech Investor 1. COMMENTARY The Nasdaq Exchange seems like a boxer that begins each round with a refreshed feeling yet ends each round with buckling knees. Even though the Nasdaq Composite has been poised to open higher most mornings, investors have been selling into the strength. Blue chip high tech stocks have been taken out one-by-one and that has negatively impacted their respective sectors. Today, Priceline.com (PCLN, $11, down 8) warned of poor revenue growth and that contributed toward Yahoo's (YHOO, $90, down 12) steep decline and many other stocks in the Internet sector. Some investors and analysts have stated that mutual fund managers are selling their losers in order to get those stocks off their books -- otherwise known as "window dressing". Perhaps this is what's going on to an extent, but there are many stocks that are becoming quite inexpensive. The Biotechnology sector has fared pretty well in comparison to the major market averages. The Nasdaq Biotech Index (^IXB) is up 3% in the past five trading sessions while the Nasdaq Composite and S&P 500 indices have declined 4.5% and 1.5%, respectively. For the month of September, the Nasdaq Composite has dropped 13% and the Nasdaq Biotech index has declined 4.5%. A possible reason for the strength of the sector may relate to the gains that investors hold, especially in the large-cap stocks, and the favorable outlook for the industry. If fund managers have gains in Biotechnology stocks, then there's less need to sell those securities for window dressing purposes. In fact, money managers might wish to purchase stocks in the Biotech sector. Money managers and investors are confident that companies will be successful in bringing more drugs to market. Analysts have been stepping forward lately to give their recommendations on Biotech stocks. For the most part, their opinions have been positive. Last week, Prudential Securities had very positive things to say about Myriad Genetics (MYGN, $79), Tularik (TLRK, $32) and a few other Biotechs. This week, Salomon Smith Barney provided more conservative projections with Outperform ratings and price targets on Millennium Pharmaceuticals (MLNM, $148, target $155), Applied Biosystems (PEB, $113, target $135) and Celera Genomics (CRA, $99, target $114). The price targets do not indicate much upside potential for these shares in the next 12-months. Salomon also attached a neutral rating and a $67 price target on shares of Affymetrix (AFFX, $54). That may have served to depress shares of Affymetrix on Tuesday. On Wednesday, UBS Warburg established a Buy rating on Affymetrix and a 12-month price target of $95. Finally, with respect to the decline in stock prices, it is important to differentiate between declines caused by market factors and those caused by company-specific factors. With Biotechnology stocks, investors need to have a long-term vision as companies cannot bring new drugs to market every six months. Most Biotechnology stocks ran up to very high market values earlier this year before moving into a steep correction. Many of the better and bigger companies have seen their stocks fully recover and establish new all-time highs. If the investment community considered Biotech stocks as high-risk investments with little promise of drug discovery, the sector would not have been able to bounce back from its decline in April. It is worthwhile for investors to consider whether the "story" has changed for their Biotech holdings or whether the company is failing to move forward with its technologies and developments. With respect to trading activity, it is useful to monitor the volume of shares traded. When stock prices decline on little volume (in comparison to the average daily volume), then that typically implies that investors are not eager to purchase shares. However, that is a lot different from investors wanting to dump shares, as in those cases, the volume is typically great. So, it is useful to discern whether upward movements in price are associated with greater volumes than downward movements in price. .......... Todd Shaver Editor in Chief The Bull Market Report Washington, DC USA Have you tried THE BULL MARKET REPORT DAILY? Click here for a two-week free trial: bull-market.com -or- send an email request to Susan@Bull-Market.com with "FREE TRIAL" in the subject line.

To: jjkirk who wrote (5422)	9/28/2000 1:53:21 AM
From: jjkirk	Read Replies (1) \| Respond to of 13572

From Raging Bull Ciena Board ragingbull.altavista.com By: tomcat08 $$$$ Reply To: 9902 by hjekel $$$$ Wednesday, 27 Sep 2000 at 6:14 PM EDT Post # of 9915 Invesco wary of 3G auction fallout Fund manager cuts holdings in mobile equipment makers By Bernard Hickey, FTMarketWatch 9:52:00 AM BST Sep 27, 2000 LONDON (FTMW) – The fund manager at one of the top-performing U.S. telecommunications funds says he’s wary of buying Europe’s mobile telephone equipment makers because of the heavy costs of third-generation (3G) licences in Europe. The high spending raises concern that the telecoms operators may be forced to skimp on 3G infrastructure, or depress demand for handsets by charging high prices to recover the auction outlays, says Brian Hayward, the manager of Invesco’s Telecommunications Fund [US:ISWCX] “The auction process has made the market concerned,” Hayward told FTMarketWatch in an interview. He referred to comments by Ericsson about how high 3G auction prices could damage demand for infrastructure and handsets. See story Hayward manages more than $4 billion worth of stocks in the Invesco fund, which has returned 95.5 percent in the year to the end of August and an average 65.6 percent a year over the last 3 years. It ranked first out of 10 telecoms funds in the last five years, according to fund analysts Lipper. Heavy auction costs Europe’s major wireless and terrestrial telecom companies, including Vodafone [UK:VOD], Deutsche Telekom, [DE:555750] [DT] Telefonica [TEF], France Telecom [FR:013330] [FTE] and British Telecom [UK:BTA] [BTY], have already paid a total of about 86 billion euros ($75.5 billion) for 3G licences in Germany and Britain. They have raised their debts and are selling off units to fund the licence spending. Their share prices have slumped since the auctions. An Italian auction due to be completed next month is expected to cost about 35 billion euros more. Nokia holding cut Invesco has already reduced its holding in Finnish handset and infrastructure maker Nokia [NOK] and is not a big holder in Ericsson [ERICY]. Concern about the 3G spending was a factor in the big falls in the share prices of Nokia and Ericsson after their mid-year results. See story on Ericsson’s results. See story on Nokia’s results. See Goldman’s view on pressures on Ericsson’s position. There is also a danger the telecoms operators will not be able to provide the content to fill their 3G networks once they are built, or that the capacity will go unused, Hayward said. Risk of 3G flop Hayward pointed to the lackluster response to WAP (Wireless Application Protocol) services introduced in Europe over the last year. WAP is a less sophisticated way to access the Internet and has not been as successful as many had hoped in its European launches because of slow download times and relatively sparse content. “There’s still a risk ahead of us that all that capacity that we will have when the third generation is deployed will go unused,” he said. “We may not see the ramp up in services that has everyone so excited about what is happening in Japan.” The explosive growth in NTT DoCoMo’s [NTDMY] i-mode mobile Internet service in Japan over the last year has helped boost the European auction prices. I-mode is now the world’s second-largest Internet Service Provider behind AOL [AOL], with 12 million customers to AOL’s 23 million. Stick to infrastructure Hayward said Invesco wanted to take advantage of the rapid growth expected in use of the Internet through wireless and telecommunications networks. But Invesco does this by buying telecoms infrastructure plays, in particular those linked to growth in optic-fibre networks and data storage networks. It’s top ten stocks are currently dominated by networking and fibre-optic equipment groups like SDL [SDLI], which is merging with JDS Uniphase [JDSU], Corning [GLW], Nortel [NT] Ciena [CIEN], EMC [EMC] and Juniper Networks. Most of these investments are U.S.-based, but one European stock Hayward has been watching lately is France’s Alcatel [FR:013000], which has transformed itself into a telecoms equipment maker. Invesco has invested relatively less in telecoms operators. Telekom ‘flowback’ It holds Vodafone and will hold a stake in Deutsche Telekom, although this is linked to the impending swap of Invesco’s Voicestream shares for Telekom shares. Deutsche Telekom is buying Voicestream as it aims to boost its U.S. wireless presence, but does not have a substantial terrestrial presence in America. Hayward said many U.S. fund managers would sell down their Deutsche Telekom stakes once they received the stock. “A lot of that stock is going to go back to Europe,” he said. This expected sale of Deutsche Telekom stock back to European institutions is known as “flowback.” See more information on Invesco Telecommunications fund