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Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (4730)	2/9/1999 2:34:00 PM
From: Allen champ	Read Replies (1) \| Respond to of 41369

From Goldman Conference, reported by CBS MarketWatch America Online (AOL) topped the recommendation list of fund managers speaking at the Goldman symposium Tuesday. "They've got a pretty good model for world domination," said Jim Cramer of Cramer Berkowitz. Bill Miller of Legg Mason said AOL could have an operating margin of 30 to 50 percent within 10 years and that its stock could quadruple by then. Miller praised AOL President Bob Pittman for treating AOL as a media company rather than a technology company. Fund managers including Cramer, Miller and Roger McNamee of Integral Partners disagreed over the outlook for tech stocks. Cramer said he was cautious; McNamee described himself as bullish on the sector. Other stocks to watch mentioned by the fund managers: Microsoft (MSFT), Rambus (RMBS), Inktomi (INKT), Flextronics (FLEXF), Qwest (QWST), MCI WorldCom (WCOM), Gateway (GTW) and Philips Electronics (PHG). Word from Intel Chief Financial Officer Andy Bryant that the chip maker has not changed its guidance to analysts on earnings expectations after cutting prices on its Celeron processors gave a boost to the stock, money managers here noticed. "Some people suspect that Intel is being too conservative," said Gary Tanaka of Tanaka Capital Management. "They haven't changed guidance, and Intel continues to be the cheapest among the big tech companies." But Bryant's address at the Goldman symposium was not enough to lift the technology sector. "We've been expecting profit taking," Tanaka said. David Smith of Loomis, Sayles & Co. said that, despite the bullish comments coming out of the Goldman conference, "People are not convinced about who will be the long-term winners." Broadband and the recent deals surrounding the advent of fast Internet connections are getting serious attention. "The broadband market will be the single biggest stimulus our industry can have," said Michael Dell at Tuesday morning's keynote. At Home (ATHM) presents Tuesday afternoon. The cable Net connector just inked a deal with Excite. "There's a buzz about broadband. This will be bullish for the leading-edge companies," said Loomis, Sayles' David Smith. One money manager pushed the question on broadband at the EarthLink presentation. "Aren't you underestimating the impact [on your business] of broadband?" he asked EarthLink's chief executive, Garry Betty. Some 1.3 percent of EarthLink's members are high-speed connectors. Betty sees that rate growing to 2.5 percent per year in the next three to four years. "From a customer standpoint today," he said, "two trucks have to roll up for cable or DSL [access]." Electronic encryption software firm Entrust Technologies (ENTU) said Tuesday pending U.S. legislation could pave the way for health-care companies to shift more of their communications over the Internet, in turn boosting the customer base for encryption businesses. "We do believe that insurance and pharmaceutical companies have a very good need for our type of technology," Entrust CEO John Ryan told CBS.MarketWatch.com. Ryan, appearing at the Goldman Sachs Technology conference in New York, said the so-called HIPPA legislation makes transferring confidential information over the Internet with digital signatures a more realistic aim. Entrust shares traded down 1/16 to 25 7/8.