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Technology Stocks : Walt Disney -- Ignore unavailable to you. Want to Upgrade?

To: DAPerez who wrote (1439)	1/25/1999 1:37:00 PM
From: DAPerez	Respond to of 2222

From CBS Marketwatch 1/23/99: WILMINGTON, Del. (CBS.MW) -- These days, "Net stocks" and "value" aren't often uttered in the same breath. Since most Internet companies that regularly grab headlines have stratospheric price-to-earnings ratios, and many more have yet to turn a profit, it's no surprise the sector leaves value investors whose strategy is to buy on the cheap out of the game. The stocks are off-limits to money managers whose criteria for investing are a bit more exacting than a rousing pitch and the promise of many happy returns. So is there anything in the Net for such investors? Count on it, says Alexander Cutler, a portfolio manager at Brandywine Asset Management, who started the Sector-Neutral Value Fund in 1997. The fund, which has assets of about $50 million, is composed of 55 stocks that represent the least-expensive names in each segment of the economy. The fund is open to institutions and high net worth individuals, requiring a minimum investment of $250,000. Cutler believes that amid the razzle-dazzle of Internet mania, most investors aren't seeing the cosmos for all the meteors. "People are snoozing on the Net. There are stocks [out there] that are cheap relative to history and their futures are brighter than [ever] before," he says. The value approach Most investors are focusing on a small group of highly publicized stocks. There's not a breadth of vision, Cutler says. He uses a relative value approach, as opposed to an absolute value approach, to mine for companies that will "boost the efficiency that the Net is forcing." The fund mirrors the sector weightings of the S&P 500 Index and chooses the least expensive issues within each to fill out the portfolio. The strategy differs from an absolute-value approach, in which a fund manager basically buys the cheapest stocks in the marketplace, regardless of industry or sector. The relative-value strategy has historically performed better than the absolute-value approach, Cutler says. Efficiency gains When picking stocks, Cutler seeks "the real beneficiaries of the Internet -- those companies that will ensure that the Net reaches its true potential. It's clear to me, clear to anyone that has an e-mail address, that the Net can take our economy and the business economy to the next level." Among his favorites are companies that aren't being evaluated on their potential to enhance or lead to that efficiency. Cutler groups the stocks into three categories: access and content providers, infrastructure players and efficiency innovators. In the first group, Cutler likes media conglomerate Walt Disney Co. (DIS), services company Cendant (CD) and financial news provider Reuters Plc. (RTRSY). Disney has interests in TV and movie production, theme parks, publishing, a cruise line, the Internet through its recent deal with Infoseek (SEEK), professional sports franchises and shares in five cable channels, including ESPN. The number of brand names under one roof appeals to Cutler, as does Disney's increasing presence on theWeb. "Now they have a whole new medium to shove their content through," he says... Now where have I heard this before? Regards, DAP