To: Sonny McWilliams who wrote (22184 ) 1/2/1999 5:00:00 PM From: Frank Ellis Morris Read Replies (1) | Respond to of 27012
Good Afternoon Sonny, Happy new Year!! I found this story today in Barrons and was most pleased with the glowing endorsement by the fund manager of the Janus Twenty. Tell me what is you take on the information regarding Dell? . It appears that his number one investment is America On Line and he had powerful reasons for his approach. He said that his second largest holding would probably be Dell although he did not feel that it would go up 300% as it did in past. The one interviewing his felt that he was hiding something as to the reason why he was selling Dell in October. I wonder if you or anyone else saw the article and what was your take on the story. It looks like many analyst are now agreeing that technology will be the best perfomance sector in 1999.Lately he's been buying more America Online and lightening up on Dell. Schoelzel's approach isn't without risk. Right now, for example, he owns some of the market's highest fliers, including Dell, Microsoft and Cisco Systems. In recent weeks, Schoelzel has been taking an even greater chance, loading up on America Online, which trades at a mindboggling 226 times next year's expected earnings. He's been buying so much AOL that it has become his biggest holding. Even Schoelzel admits the stock now looks incredibly pricey. But he knows that if he wants to beat the market he must bet heavily on the stocks he deeply believes in. Since Schoelzel started adding to his AOL position in December, the shares have surged more than 70% in price. Although he cautions investors to tread lightly with AOL during the next few months, he says he likes the company's prospects for the longer term. "I think they're signing up subscribers faster than people realize, and they will continue to do so for at least the next year," says Schoelzel. Indeed, AOL last week said it signed up more than one million first-time users between mid-November and December 30. Schoelzel lives to invest in fast-growing companies, but that doesn't mean he achieved his world-beating results simply by investing in go-go Internet stocks. Besides AOL, Microsoft, Cisco and Dell, his fund's 10 largest holdings as of October 31 were Pfizer, Warner-Lambert, MCI WorldCom, General Electric, Time Warner and Nokia. Schoelzel has done meticulous research on his top 10 stocks, and he keeps a close eye on them. It's easy to see why. Almost 60% of the Janus Twenty portfolio is invested in these 10 names alone. One surprise: Having fully enjoyed Dell's 249% gain in 1998, Schoelzel has actually been selling the stock in recent weeks. On October 31, Dell was his biggest holding, accounting for nearly 11% of the Janus Twenty portfolio. Schoelzel won't say why he's selling Dell, other than to note that he doesn't think its stock price will triple again this year. One gets the sense there's something more on his mind, but upon further questioning, he points out that he hasn't completely dropped Dell, and he adds that it will probably rank as his + second-largest holding as of December 31. Have a good day Frank