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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Jenna who wrote (41554)	5/24/1999 8:54:00 AM
From: Spartex	Read Replies (1) \| Respond to of 120523

Barron's Online Rejecting Momentum's Lure This money manager finds more to like than fear in today's market An Interview With Carl Lawrence -- The head of Warwick Capital Management, a New York-based money manager, tailors equity portfolios to the degree of risk that his clients, individual and institutional alike, are willing to assume. Currently, he sees more positives than negatives in the outlook for U.S. stocks, and is holding only 10%-15% cash reserves, which is normal for him. However, should conditions dictate, he would go to 80% cash, as he did in the summer of 1987. While he doubts that the yield on benchmark 30-year U.S. government bonds will top 6% any time soon, should the yield hit 6.25%, he'd probably go to 50% cash. Meanwhile, he looks for stocks that fly below the radar screens of momentum investors who buy and sell quickly on the Internet. What's so good about Scientific-Atlanta's TV-set-top boxes? Why is Tommy Hilfiger so fashionable? Can Boeing's earnings soar again? Read on. -- Peter C. Du Bois Q: Any other technology plays? A: The CEO of Novell , E.E. Schmidt, has done a remarkable job of refocusing the company on computer networking software, where it has achieved complete dominance. Novell has put rivals like Microsoft in the defensive position of playing catch-up. Q: Complete dominance? A: Let's say they have more than 50% of the business. Also fortuitous for Novell is the fact that the introduction of Microsoft's Windows 2000 software has been delayed. Another plus for Novell is an exponential increase in demand for Internet-related software products. The major driving force in the dramatic increase in Novell's earnings that we see over the next few years is the company's Directory Services software. It offers the fastest access to the Internet of any software now on the market. It also comes with open-systems architecture, meaning it can be interfaced with any system. Q: What is this Directory Services? A: If you go online and are looking for certain information quickly, this software enables you to find it faster than any other software. Without it, a search for the category you're seeking could take several hours. With Directory Services, it takes only a few minutes. Q: To whom does Novell sell its software and systems? A: Internet service providers as well as many industrial companies. Q: What's Novell's earnings outlook? A: From 29 cents a share in the year ended last October 31, we see 40-50 cents this year. But that's not the big story. We like to anticipate the future trend of earnings for companies we follow. Looking out over the next two or three years, we see Novell earning $2-$2.50 a share. Q: Where's the stock? A: Recently 24. Our conservative target is 40-45 within 12-18 months. Q: What's a fair price/earnings ratio for Novell? A: Around 40. +++++++++++++++++++++++++++++++++++++++++++++++++++++++++ I believe we'll see $30 shortly. Furthermore, the time will come for Novell to trade in the $75-100+ range within the next 12-18+ months IMHO. Just calling it as I've seen it the past 18 months, and fortunately a few professionals are finally saying it now too. Enjoy! GO! Humbly, QuadK