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Technology Stocks : COMS & the Ghost of USRX w/ other STUFF -- Ignore unavailable to you. Want to Upgrade?

To: Ian Mahoney who wrote (10296)	12/7/1997 2:43:00 AM
From: Wigglesworth	Respond to of 22053

HIGH TECH, HIGH WRECK (or Ghost of USRX, Ghost of a Portfolio) ÿ PITY THE POOR shareholders who bought into Merrill Lynch Technology (MBTCX) at the end of September. At the time, this concentrated portfolio, home to many chip and semiconductor equipment makers, was up 44% for the year. It graced the top of many performance lists. But those trying to profit from its momentum have been sorely disappointed. The fund has given back nearly all of its gains, leaving it with a puny 0.5% increase for 1997. Investors who bought in at the end of September have lost about a third of their money. What's gone wrong? Big chip holdings that powered returns in the first half like Applied Materials (AMAT) and National Semiconductor (NSM) have taken it on the chin. This week alone, Merrill Lynch Technology fell 11%, making it the worst performing mutual fund for the period, according to Lipper Analytical Services. The carnage began when several networking equipment companies preannounced bad earnings. As a result, Applied Materials, National Semiconductor and Bay Networks (BAY) got hammered. Other losers in the Merrill Lynch portfolio as of the end of September include Creative Technology (CREAF), a maker of sound cards and multimedia upgrade kits and Teradyne (TER), which manufactures electronic testing equipment used by semiconductor makers. Teradyne has been in a free fall since mid-October. Say this for Merrill Lynch Technology shareholders: Losing 11% of their money is nothing they're not used to. The fund, run by James Renck since 1992, has been an absolute dog for the past three years. In 1995 it lost 33% of its investors' money. And in 1996 it lost another 20%. Despite the technology-led bull market, the fund's three-year average annual return is a pathetic 3.4%. Not surprisingly, Renck didn't want to discuss his performance with us. And a Merrill spokeswoman said the firm did not comment on short-term performance.