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Strategies & Market Trends : Sharck Soup -- Ignore unavailable to you. Want to Upgrade?

To: Sharck who wrote (10964)	3/7/2001 10:48:51 PM
From: DlphcOracl	Respond to of 37746

Sharck: Regarding Banc of America's downgrade of CHP It was posted on the CNET website; look under "Brokerage Center" on right-hand side of page. They stated: "We are lowering our rating to Buy from Strong Buy. This downgrade is a reflection of the multiples paid for companies selling into the telecommunications sector and our belief that outperformance in this sector could prove difficult. Based on a lower multiple (20X estimated earnings), we are lowering our price target to $49 from $66." In other words, they are "throwing out the baby with the bath water". Unlike most stocks in the telecommunications sector, CHP's P/E is quite reasonable and it is a value stock at current levels. With good valuation, any down-side should be limited. When they reported earnings, they gave positive forward guidance, saying that they expect to meet estimates for the upcoming period. thestreet.com The major risk with CHP is the risk inherent in all small-cap stocks. Even so, I think small and mid-cap stocks will outperform large-caps coming out of a bear market. DlphcOracl