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Strategies & Market Trends : Telebras (TBH) & Brazil -- Ignore unavailable to you. Want to Upgrade?

To: jayray who wrote (7211)	8/27/1998 7:02:00 PM
From: djane	Read Replies (3) \| Respond to of 22640

thestreet.com article excerpt thestreet.com "People are pulling out of international markets and putting money into domestic assets," said Ian Link, portfolio manager for the Franklin Global Utilities Fund, whose holdings include RBOC stocks as well as WorldCom (WCOM:Nasdaq) and Sprint (FON:NYSE). "They're also re-deploying domestic money into electric utilities and telecoms, which have predictable earnings, even in a slowdown or recessionary environment." WorldCom was down 1 7/8 at 50 5/16 and Sprint fell 1 7/16 to 70 1/4. "If you want a solid, no-surprise steady earnings story for the next few years, the telecom sector is attractive," said Link, who added that his fund, which takes a long-term outlook, isn't yet buying. "We're waiting for some of our favorites stocks to come down a little bit more. We'll be net buyers over the next few months, but I think we have a few more days or weeks of correction coming." Guy Woodlief, telecom-services analyst for Prudential Securities, said he wasn't surprised by the sector's ability to outperform the market as a whole. "It's a defensive move by portfolio managers who want to stay invested in equities and are looking for safe havens," he said. "On days when the market falls 300 points, there's a high probability that the Bell companies would outperform the market." With the Standard & Poor's 500 off 9% from its record highs, the AT&T Equity Income Fund, a closed-end fund composed of stock in companies spun off from AT&T (T:NYSE) after the 1984 breakup of the national phone monopoly, is off only about 5%, Link said he'd also be looking in the coming days and weeks at the stocks of foreign telecom companies, which he said were getting "unfairly decimated." "A lot of portfolio managers who had invested in foreign stocks for the first time got their fingers burned and are retreating," he said.