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Technology Stocks : Novell (NOVL) dirt cheap, good buy? -- Ignore unavailable to you. Want to Upgrade?

To: telebob who wrote (25326)	2/7/1999 7:27:00 PM
From: PJ Strifas	Read Replies (1) \| Respond to of 42771

Hello! I was wondering the same thing until I came across this following article. Can anyone keep us abreast of fundamentals regarding NOVL this week. If MMs are taking their $$ and running into bonds or is this something the "Internet/Technology Blue Chips" have to worry about more? Peter ---------- Bears Are Back On Wall Street NEW YORK (Reuters) - The bears are back, this time armed with the club of higher interest rates. Investors have reveled in years of falling interest rates and stocks have ridden a wave of easier money to higher and higher levels. But now, after a burst of data showing the U.S. economy is powering ahead at a far faster growth pace than economists and likely the Federal Reserve had expected has sparked fear of higher interest rates. Already, tremors have been felt on Wall Street and the coming weeks may see those erupt into something far more destructive,if signs of inflation emerge. In some ways, the ongoing global financial turmoil played into the U.S. market's hands. The crisis prompted a series of interest rate cuts by the Fed, which in turn sparked a rip-roaring market rally that put stocks at tottering valuations amid a booming economy, particularly in the high-technology sector. But investors got nervous last week with tech stocks leading Wall Street down. Several Wall Street veterans are stepping back from the market. Brown Brothers Harriman's Charles Blood, the director of financial markets strategy, last week cut his near-term outlook on the stock market to neutral from bullish. ''In the longer term, about six months, we are still moderately bullish. We think this is still a bull market,'' Blood said. ''But near-term, the next one to three months, stocks are not likely to go up on a week-by-week basis. It is more likely we are in a period of consolidation or correction, of about 3 to 5 percent from the peak,'' he said, noting a drop in money supply growth, which has come down from double-digit levels in the past few months, and weakness in the bond market. J.P. Morgan's U.S. equity strategist Doug Cliggott Thursday recommended cutting back on stocks in its model portfolio to 50 percent from 60 percent, citing valuations. ''We've seen too much stock market optimism and too much bond market pessimism. We may be reaching a point where we should buy bonds and sell some stocks,'' said Hugh Johnson, chief investment officer at First Albany Corp., who has turned ''short-to-intermediate-term bearish,'' on U.S. stocks. Computer and Internet stocks will see a round of updates from companies at Goldman Sachs' annual high-tech conference in New York next week. ''Right now portfolio managers are saying maybe I should shift out of technology stocks,'' First Albany's Johnson added. In other corporate news, U.S-based drugmaker Pharmacia & Upjohn will report its fourth-quarter earnings on Feb. 10. The company, which last year relocated to New Jersey from Europe,has been in the midst of an earnings turnaround since the second half of 1998. MCI WorldCom Inc. the nation's no. 2 long-distance company,reports its earnings on Feb. 11. Planned initial public offerings run the gamut from Prodigy Communications, to staffing services firm Korn/Ferry, mutual fund manager Gabelli and Healtheon Corp., an Internet company started by the founder of Netscape Communications Corp. . Economic data that could affect the markets includes January retail sales and the Richmond Fed Survey. Investors will also watch the Treasury's $10 billion quarterly refunding.