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Strategies & Market Trends : Trend Setters and Range Riders -- Ignore unavailable to you. Want to Upgrade?

To: SusieQ1065 who wrote (4839)	5/5/2001 2:04:09 PM
From: Frederick Langford	Read Replies (1) \| Respond to of 5732

Briefing does a Stock Brief on GLW: Trader's Edge: Corning Inc (GLW) The chase is on... The precipitous advance in the Nasdaq over the past several weeks has left many investors sitting on a pile of cash. Investors are now scrambling to find sound investment ideas, fearful that the Nasdaq will resume a bull advance without them onboard. A perusal of the fundamentals of the best and brightest reveals that the vast majority have already become disconnected from their fundamentals. You will be happy to discover that there are a few that still fall into the value category. Trading Points What is there to like about a market that has already run more than 35% in a little less than a month, and where valuations have already returned to bubble levels? Longs have a couple of things in their favor: a) investors continue to place significant bets on the bear side that this advance falls on its face and lows are retested; b) the mountain of cash, which Mario Bartiromo incessantly reminds us is building on the sidelines, is finally feeling bold enough to move back into the market. We feel that the intelligent way to reenter this market as an investor is to decide which stocks mutual funds view as "must-owns." To meet this criterion a company must be the number one or two player in its space; carry a multiple that is not at a significant premium to its growth rate; and possess a management team that Wall Street feels it can believe when earnings guidance is given. This analyst thinks that Corning (GLW 23.61) fits the bill. This leading provider of optical components to the telecom industry has seen 18 months worth of share price gains go up in smoke as investors were beaten out of the market by serial earnings warnings from the tech sector and eventual capitulation by overexposed mutual funds... We now find the stock trading 30% off its 52-week low of $18.19 reached April 3rd. Corning has guided down estimates twice over the past two months. Recent string of lowered guidance has pulled down the consensus numbers for 2001 and 2002 to $1.01 and $1.20 per share, yielding earnings multiples of 23.5 and 20.0, respectively... Given that sector leaders such as Cisco and JDS Uniphase have already reinflated to forward multiples of 66 and 68, respectively, Corning presents itself as a legitimate bargain. More compelling is that while these companies are projected to show negative earnings growth in 2002, GLW is still expected to grow EPS at respectable clip of 19%.

To: SusieQ1065 who wrote (4839)	5/5/2001 7:16:09 PM
From: Susan G	Respond to of 5732

Tech Execs, Economists Express Concern May 5 3:58pm ET By Andrea Orr PORTOLA VALLEY, Calif. (Reuters) - After a rally in U.S. stock markets lifted hopes for better economic times on the horizon, some leading high-tech executives and academics begged to differ, saying the current slump would be prolonged. "I think we're in a "U," said Cisco Systems Inc. Chief Executive John Chambers, referring to a U-shaped pattern in which the economy falls and then remains depressed for some time before recovering. Chambers' opinion has changed from several months ago, when he spoke of a V-shaped economy, that would bounce back quickly. He offered his thoughts during a day-long New Economy Forum here Friday, which closed with a highly unscientific survey, in which guests were asked to cast a vote for the economy: "U," "V" or "L," the most feared outcome, in which the downturn continues indefinitely. Although there were a couple of votes for the preferred scenario of a V-shaped recovery, the more popular opinion was that the economy would go into a long U. And some people suggested it was in an L-shaped trend, at least in California. "I'd say it will be a U for the U.S. and an L for California," said John Doerr, partner with Kleiner Perkins Caulfield & Byers, the prominent Silicon Valley venture capital firm that has financed several big high-tech and dot-com start-ups, including Amazon.com Inc. and Drugstore.com Inc. . Echoing a common theme of the forum, which was sponsored by the Haas School of Business at the University of California at Berkeley, Doerr said California's energy crisis threatened to weigh down an already fragile economy. He also warned that energy would become increasingly central to the worldwide economy as Third World development spurred demand for power, water and infrastructure. THE BACKWARD J Some of the other economic issues that were raised hit closer to home for the group of guests, many who actively participated in the New Economy expansion of the late 1990s and said they were forced to question the value of the high-tech innovations they had helped build. A number of people said they had learned the hard way that just because they could build a new gadget, it did not mean people would want to buy it. "Consumers will take a look at the technology that is being pushed at them, and they will often push back very hard," said Russ Winer, a professor at the Haas School of Business, who cast his vote for a U-shaped economy. Michael Powell, Chairman of the U.S. Federal Communications Commission, also spoke about the limits of technology during his keynote address, in which he revealed that all of his mobile gadgets sometimes just complicated his life. "I find I spend a lot of time insisting that certain devices are used, when I'm on the road," he said. "Otherwise I just have a staff of people with a lot of toys and I don't know how they are going to reach me." Although the V, the U and the L are commonly cited as the three possible patterns the economy might follow, some of the guests at the New Economy Forum suggested another possibility: a backward "J" in which the economy recovers, but never regains all of its former momentum "I think we'll have a recovery, but it's going to take us a while to get back to the old euphoria," reasoned Robert Lawrence, Professor at the JFK School of Government at Harvard University. siliconinvestor.com