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Technology Stocks : PMC-Sierra (PMCS) -- Ignore unavailable to you. Want to Upgrade?

To: Bulldozer who wrote (2087)	9/12/1998 9:03:00 PM
From: Jeff Call	Respond to of 3818

Two Fund Managers profiled in the September 14 issue of Barron's mention PMCS favorably. The following is excerpted from an article called "Choose Wisely": S. Bob Rezaee, technology analyst with the $10 million Dresdner RCM Global Technology Fund, feels a little more adventuresome. "I'd look to this as an opportunity," he advises. "Pick your spots, but stick to quality names. I'm not inclined to bottom-fish broken stories, companies losing market share and having earnings problems. I'm sticking to the Ciscos of the world." And what else? "Ascend, you have to own here," he says. "They have the most comprehensive products for the next generation communications network." He also shares Rizza's enthusiasm for Compaq. The PC maker, he says, should benefit from seasonal PC strength this fall, adding, "People underestimate the synergies between DEC and Compaq." He's bullish, too, on Tellabs. "The stock is down over 50% -- it seems like a good time to build a position," he says. Rezaee thinks the proposed acquisition of Ciena could still be completed, after a further revision in the terms. In the same category, he likes ADC Telecommunications. And he's buying PMC-Sierra, a chipmaker that provides parts to communications-equipment companies like Ascend and Newbridge Networks. For Kevin Landis, a portfolio manager and co-founder of the San Jose, California-based FirstHand Funds, the year has been a mixed bag. The firm's Technology Leaders Fund has gained about 16%, sticking to the usual big-cap suspects. Its flagship Technology Value, on the other hand,is down about 18%, hurt by Landis's fondness for semiconductor stocks, which have been especially hard hit in the downturn. Bloodied, but still standing, Landis is on the hunt for bargains. "Two types of stocks will bounce back quickly after a market anxiety attack," he says. "One, the blue chip companies, because when people who had stepped away from tech stocks come back to them, they'll look to names that give them comfort, like Intel and Cisco. I'm a tech investor. I'm committed to investing in technology stocks. I'm as close to 100% invested as I can comfortably be. People like me are not the ones who are going to ride to the rescue. It's the people turning up their tech weighting from 10% to 20%." Landis would focus, too, on smaller companies where nothing has gone wrong, other than the stock price. In that group, he especially likes chip companies targeting the communications equipment makers. His picks, which include some of the very names responsible for the weak performance of his Tech Value fund this year, include PMC-Sierra, Level One Communications, Applied Micro Circuits and TranSwitch.