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Technology Stocks : p-com (pcms) -- Ignore unavailable to you. Want to Upgrade?

To: JakeStraw who wrote (789)	10/15/1998 1:45:00 PM
From: Rusty Johnson	Read Replies (1) \| Respond to of 1461

PCMS was just listed in a table of one man's picks ... PUNDIT NEWS CAN THIS BE THE TIME FOR TAKEOVER STOCKS? AT A TIME when risk arbitrageurs have been battered by a spate of failed mergers, and most stock pickers are recommending companies in defensive sectors, Ed Kerschner has a radical idea. Our No. 2-ranked pundit and top stock picker is advising his clients to buy acquisition candidates, which he believes will be bought at a significant premium to their current stock prices. Sounds like strange advice coming at a time when investment banking fees are down, right? While it's true the markets for IPOs and high-yield debt have all but dried up, merger and acquisition activity so far remains strong. And according to the PaineWebber pundit, the stock market's recent weakness may even stimulate more M&A activity. Kerschner says companies may start to look at takeovers as a means to increase their competitive edge in a slowing global economy -- and he has identified 22 likely candidates. Kerschner believes firms will look at takeovers as a source of revenue growth at a time when price increases have become more difficult to pass along to consumers. "M&A is attractive because it generates top-line growth, creates new opportunities to cut costs by eliminating redundancies and can quickly make a firm more competitive," he argues. This isn't the first time Kerschner has advised clients to pursue this admittedly risky strategy. Back in January he made a similar market call and selected 72 companies as potential takeover candidates. Of those firms, 10 have since been bought out. ED KERSCHNER'S ACQUISITION CANDIDATES Company Price as of 10/14/98 Kerschner's Takeover Price P-Com 2.69 15