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Strategies & Market Trends : Market Gems-Trading Strong Earnings Growth and Momentum -- Ignore unavailable to you. Want to Upgrade?

To: Luce Wildebeest who wrote (4253)	2/9/2001 12:49:53 PM
From: Ron	Respond to of 6445

Unusual mid-day buying in SCH Schwab. Anyone seen or heard any news/rumors?

To: Luce Wildebeest who wrote (4253)	2/9/2001 1:16:49 PM
From: Lane Hall-Witt	Read Replies (2) \| Respond to of 6445

cg -- BHH: Personally, I wouldn't invest in the B2B HOLDRs, because there are too many questionable component companies in there. You get good companies such as ARBA and CMRC, but you also get ICGE, VNTR, and other marginal players that are going to drag down the overall value of the security. You don't get players like ORCL, ITWO, BEAS, ARTG, MANU, BVSN, PSFT, and SAP -- which, along with ARBA and CMRC, look like the real movers and shakers in B2B. My inclination would be to stock-pick this space; already, it seems that there are a number of standout companies that look like they have decent long-term prospects, and others that look like sure losers. If you want diversification within the B2B space, I would make up my own basket of top-tier companies, rather than buying a stake in the many losers that the HOLDRs include. I also am not convinced that this is the bottom for B2Bs. That news Smart_Money mentioned earlier, on the closing of Dell Marketplace, is the first in what I expect will become a tidal wave of failures in the e-marketplace space. It's just inevitable that marginal e-marketplaces are going to get washed out, sooner or later. When that happens, I'd expect it to generate tremendous negative sentiment for the B2B sector. In my opinion, that would be the best time to build investment positions in the B2B blue-chips. There will doubtless be good short-term trading opportunities before sentiment turns that far down, but I'm not sure we are there yet. The B2Bs are oversold, but the momentum really has turned against them the past few days. The damage in ARBA has been breathtaking, and even ITWO the wonder stock has taken a 25-30 percent haircut in just a couple of weeks.