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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Roger A. Babb who wrote (17991)	4/8/1999 7:45:00 AM
From: Kip518	Read Replies (1) \| Respond to of 18691

Roger, looks like this analyst has come around to your way of understanding this crazy market: Michael Belkin yesterday in his weekly piece had the following to say... "This is what works on Wall Street - cut earnings forecast and raise price target. The PC market offers great opportunities for investors. IBM's announcement of a billion-dollar loss on PC operations should be a boon for other box-maker stocks. Emachine's overnight cannibalization of a 10% PC market share with its sub-$600 PCs can't help but increase margins and market share for higher-priced manufacturers like Dell. Forbes ASAP magazine column claiming Dell made $3.1 billion buying calls and selling puts on its own share price over the past three years ($600 million more than net income in the period) should increase Dell's allure. Investors can now see Dell for what it really is - an exciting one-way lottery ticket on a rising share price rather than just a boring old PC maker. In that light, Dell deserves a higher multiple. Other PC companies like Compaq should also benefit from plunging PC prices and loss of market share. Of course, Intel itself is the ultimate beneficiary of collapsing PC prices and loss of market share to low-priced microprocessor competitors like AMD and Cyrix, who dominate the burgeoning low-end market. Every new-age portfolio manager should buy more Intel stocks to take advantage of this great company's declining unit price, revenues, margins and market share. Our advice to the investment industry is - shake the cobwebs off your antiquated portfolio management policy and move into the 21st century. Discredited notions of diversification and value should be jettisoned. Portfolio managers should follow the stampede of individual investors and pile all the assets of their funds into a small handful of stocks, i.e. the only ones that are going up. Once the mutual fund industry has switched all its assets out of non-performing value stocks and has indexed its trillions of dollars to AOL, Amazon, Yahoo, and Microsoft, the era of mutual fund under-performance will be over. Then we can all sit back and watch our retirement assets compound at light-speed and enjoy the well-earned fruits of a wise and responsible new-age investment philosophy." From: stocksite.com