"Don't Worry" Says Doublespeak Acampora in his latest premonition.
No mention of DELL although AOL gets a ringing endorsement:
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SUSIE GHARIB: The Dow still hasn't closed at 10,000, but our guest tonight
says, don't worry. Dow 11500 is just a few months away. We're happy to have
with us Ralph Acampora, chief technical analyst at Prudential Securities.
11500. You are very bullish. What is your outlook here?
RALPH ACAMPORA, CHIEF TECHNICAL ANALYST, PRUDENTIAL SECURITIES: You know, I'm
talking about the Dow Jones Industrial Average and it's 30 of some of the
largest companies in the United States. And that's why I think the money is
being concentrated, and for lots of reasons. And If I'm bullish on General
Electric (NYSE:GE) and Johnson & Johnson (NYSE:JNJ) and stocks like that, I just
don't
see, Susan, I just don't see that much downside risk for the Dow. That doesn't
mean everything is good, but most people look at the Dow as the market's
barometer.
GHARIB: But this is one reason that the bears who are out there are nervous,
because they say it is concentrated in just this new nifty fifty. What do you
say to that?
ACAMPORA: If I'm an investor and I want to buy the best stocks for my
portfolio, I go where the action is. So therefore, I buy the Dow-type stocks.
I mean, that's the way I look at things. I get paid to try to pick the
prettiest stocks. And if they're in the transportation average, I'll pick some
of those. If they're in the drug stocks or in the energy area, it's lots of
rotation.
GHARIB: Let me ask you some other thing. You've been on the bear side before.
So let's just go down some of the things that people bring up. They say that
there are more down stocks than up, advance/decline. They talk about first
quarter earnings could be a trouble spot. They look at the technology stocks
and say hey, you know, we've lost our leadership. How do you rationalize all
of that?
ACAMPORA: Yeah, well, I don't know if you remember the market in 1994. The
Dow was like flat for the year and the S&P maybe down at worst, 9 1/2 percent,
not even 10 percent. And the rest of the market collapsed. Utilities were
down 30 percent. And most people said well, turned out it was a pretty good
year. It was a terrible year. Now we could be doing something like that again.
But when people ask me about the market, again, I'm couching my terms in blue
chip Dow-type stocks. And I don't think they look that vulnerable. I am not
pounding the table that everybody has to buy all the secondaries. On the
contrary, I think the secondaries are probably continuing to perform.
GHARIB: What other stocks do you like? You mentioned pharmaceuticals just a
few moments ago and
GE. but what else? What else do you like?
ACAMPORA: I like the biotech stocks, MedImmune (NASDAQ:MEDI) is one of them. I
mentioned the airlines, like Southwest Airlines (NYSE:LUV) I like. I like some
of
the lottery and gaming stocks like Mirage (NYSE:MIR)and Circus-Circus
(NYSE:CIR), some
of the food stocks, these fast food stocks like I know Wendy's (NYSE:WEN) was
very
very strong today, there's another one, Tricom Global. That's very, very
strong.
GHARIB: A lot of people talk about the financial stocks. How do you feel
about the banks?
ACAMPORA: Oh, I love the banks. I know they came under a little bit of
pressure here today, but they've gained so much. The financials, start with
the big Merrill Lynch (NYSE:MER), start with Citigroup or JP Morgan (NYSE:JPM),
or Chase
Manhattan Bank (NYSE:CMB). I like them.
GHARIB: I know you've also been talking up AOL (NYSE:AOL) stock. And again in
this
down market today, it was up.
ACAMPORA: So what do I Susie? Do I not buy it?
GHARIB: What do you tell investors here? Do you buy it now at this levels?
ACAMPORA: Of course, of course. Well, that's the point I'm making. If I can
identify, hopefully I can identify the strongest stocks and if the rest of the
market is kind of weak, I'm going to buy the strongest stocks.
GHARIB: Some people are saying sell into the rally. Would you sell, take some
profits?
ACAMPORA: It depends on what area I was in. Yeah, I might, sure.
GHARIB: OK. Dow 10000, when is that going to happen?
ACAMPORA: Yeah, well, you know, we thought that maybe it might happen fairly
soon. It just bumped it the other day. I don't know. I'd give it a little bit
more time.
GHARIB: All right. We'll see. We're patient.
ACAMPORA: Thank you.
GHARIB: Thank you very much. My guest tonight Ralph Acampora of Prudential.
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