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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: the_wheel who wrote (77921)	6/4/2001 3:54:33 PM
From: t2	Read Replies (1) \| Respond to of 99985

Wheel, Real buyers may have finally starting looking at the telecommunication stocks. Cisco is the logical choice--no debt. JNPR is not that easy a pick anymore, imho. Sales levels are now a more important than P/E. A while ago I was recommending shorting JNPR and going long Cisco. The larger companies may be in a position to make the profits of their smaller competitors disappear. Now, if the whole sector has bottomed out, then it should move up as group, more or less. Spending forecasts are quite low for the buyers of telcommunications gear...might set up the possibility of spending increases; the mirror image of what happened in the past 8 to 10 months. These stocks can only trade on the possibilities at this point, as visibility does not seem to be there for them yet. Another positive is that NT repriced their employee stock options. I am also looking that one to see if it can be bought with little downside risk. This is the one sector that has not really bounced and may be a good play. A big conference is about to begin tomorrow with probable product launches and contract announcements. That could play into this as well. I am still thinking about the sector..have a small position in Cisco but have not made any sector bets yet. I watch MSFT because of its influence on the Naz. Actually, Cisco could also turn into a big contributer as well. MSFT has backed away from 71...hit for a short time. The close is going to be interesting. Should have just taken the day off; not much happened today. However, the Dow looks to have broken above 11000 again and that could be a sentiment shifter