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Technology Stocks : InfoSpace (INSP): Where GNET went! -- Ignore unavailable to you. Want to Upgrade?

To: Dan Hamilton who wrote (22040)	10/27/2000 1:16:52 PM
From: KLP	Read Replies (3) \| Respond to of 28311

Check out the new header! and Welcome Dan! Here's an article from SI's page that most of us will want to read...Forever Falling Tech Drop--he attributes much of the carnage in the tech area to tax loss selling. Certainly would help explain things here... In early September, Wall Street introduced its latest roller coaster ride, called the Forever Falling Tech Drop. Those who decided to test-drive this new ride wanted off as soon as it started. Like the Titanic, this roller coaster ran into a few problems and sank faster than anyone had anticipated. Riders wished they had brought ulcer pills and a portfolio shield of armor before boarding the ride. Some people think roller coaster rides are all the same. Others say the Forever Falling Tech Drop is the same roller coaster as previous ones -- it simply got a new name. Scott Schuppie of Grace Equity Management attributes much of the carnage in the tech area to tax loss selling. Even though the tech area has been beaten down, he is still bullish on the longer-term prospects of the sector. Schuppie notes that from a macro point of view, the old tech leaders, including Microsoft, Intel, Cisco, Oracle and Dell, are shifting their focus, causing a transition within the industry. He says Intel, which dominates the PC semiconductor industry, is transitioning itself into a telecommunications-based chip company. "All of those companies are going through that type of evolution," states Schuppie. Many of the larger tech firms are going through some sort of transition, which has created some uncertainty for the dominant large-caps. Schuppie is upbeat on the broadband theme Schuppie's theme-focused investment style concentrates primarily on four sectors: technology, oil services, biotech/healthcare and financial services. In the technology realm, two of his largest holdings are EMC (EMC 86), the data storage giant, and Siebel Systems (SEBL 107), which provides e-business applications. One favorite at the top of his list is Intel (INTC 44 3/4). Shares of the company have stumbled, now offering long-term investors an excellent entry point. "With that washout institutional managers will step up and add to their positions" Schuppie is upbeat on the broadband theme, focusing mainly on semiconductor supplies. A couple of names he favors in that space include PMC-Sierra (PMCS 171 3/4) and Broadcom (BRCM 214 1/8). Optical networking is one idea Schuppie likes an "awful lot." Favorites in that domain include Corning (GLW 70), JDS Uniphase (JDSU 74 1/2), Nortel (NT 45 3/8) and Cisco (CSCO 53 1/2). He views the weakness in the optical area as a buying opportunity. "It looks like many momentum players are jumping out of the optical stocks. . . With that washout institutional managers will step up and add to their positions." Juniper Networks (JNPR 190 1/8) makes Internet backbone routers and Schuppie believes the company also offers great potential. Schuppie strongly leans toward the oil services sector, saying, "I don't think the price of oil will stay in the $35 range, more $27-28 is where the happy medium is. Even if oil moves into the high $20s, I believe companies like Halliburton (HAL 37 1/8), which we have been focusing on, should do very well over the next 24 months." "He notes that shares of the company trade at a significant discount..." Like the technology sector, the stocks of many biotechnology companies have been beaten down. Schuppie gives the biotechnology sector "two thumbs up" and has an interest in PE-Celera Genomics (CRA 69) and Protein Design Labs (PDLI 129 1/2). "We still like Sepracor (SEPR 71 7/8). The Lilly news is disapointing but the company has a pipeline full of new products coming out across the next 18 months and should do very well from that perspective," he says. Schuppie explains that at one time financial services accounted for 10 percent of his firm's assets, but they now account for only 2 percent of its holdings. Even though he has reduced his firm's weighting in that area, he is high on Citigroup (C 49) simply because it is a "really great global franchise." Another name Schuppie likes in financial services is the ETRADE Group (EGRP 13 7/8). He notes that shares of the company trade at a significant discount when compared to other online players such as Charles Schwab. "ETRADE should do some base building and looks like it should produce a nice return within the next couple of years," he adds. "Buy low and sell high"