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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: maverick61 who wrote (46568)	2/3/2001 4:40:17 PM
From: American Spirit	Read Replies (1) \| Respond to of 57584

On Fed easing plays: If you're talking financials remember the Fed cuts have already been priced in. Financials are selling near their highs. I've love to own some but not at these prices. Ditto retailers. Therefore who really benefits from rate cuts? Maybe the companies with the heaviest debt. Not advocating buying top-heavy losers just looking for opportunities which have not been getting attention. Telcos, LOR, these sort of companies have heavy debt, borrowed mainly to expand build-outs. When you see them getting hammered consider buying. The sentiment will always change. I expect telcos to out-perform this year and boom later in the year. Their futures are secure nomatter what they're going through now. We've already seen how VZ and SBC can and will dominate DSL, wireless etc. while smaller competitors fall behind and sometimes go out of business. These two are the giants with all the customers in their pockets because they basically monopolize the phone-lines. Even in a recession people still continue making calls. There is no significant let-up in the use of these services. So if you find a VZ for instance selling at 12 PE after a downgrade with everything going for it that is both a defensive and a growth play. That's why it's my biggest holding and I add more when I can on dips. VZ got hit by three waves of negativity recently, their strike, their lawsuits and now this Credit Suisse downgrade. But each time the stock has rallied back strong and will again. No double your money play but something safe (IMHO) in an era of uncertainty. But I also like the battered high-growth techs as they get hammered down. Will be looking for the best prices Monday morning on the likes of INTC, NOK, SUNW, ORCL, ADBE, LU, CSCO etc. These stocks always bounce back nicely once they're driven into value bargain-buy territory. Expect them to again. And again. But Jack be nimble Jack be quick, Jack jump over the candlestick formation. gg