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Stock picks by the pros
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June 23, 1999: 1:13 p.m. ET
Sifting through the semiconductor wreckage; time to buy Yahoo!?
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NEW YORK (CNNfn) -The nation's analysts and money managers continued the hunt for promising companies Wednesday, finding value in chip makers, investment banks and a software firm.
Here's what stocks the latest guests appearing on CNNfn are buying and why:
Dodge Dorland, chief investment officer of Landor Investment Management, likes electronics maker National Semiconductor (NSM), whose stock price he says has held up well compared to most technology firms.
"Technology, as an industry, is going to outperform the rest of the market in absolute terms over the next five to 10 years," Dorland said. "So you really want to have a basket of technology stocks. National Semiconductor would be one of those."
Dodge Dorland, left, shares stock views with CNNfn's Jack Cafferty.
Tom Goggins, portfolio manager at John Hancock funds, favors brokerage stocks, in part for the sector's exposure to recovering overseas markets.
"We do like Lehman Brothers (LEH)," Goggins said. "We like Goldman Sachs (GS). We think that the interesting thing about a lot of these investment banking firms is their franchises offshore are expand terrifically in Europe and Asia. They're getting a bigger chunk of the mergers and acquisitions game over there."
Shifting sectors, John Murphy, president of MurphyMorris.com, says it may be time to buy Internet portal Yahoo! (YHOO), whose shares are 38 percent off their all-time high.
"The stock looks very oversold at this particular point," Murphy said. "Probably worth looking at."
Mitchell Bartlett, Internet analyst at Dain Rauscher Wessels, recently raised his rating on Digital River (DRIV) to "strong buy" from "buy," in part for the company's growth potential. Digital River provides electronic delivery of software.
"I just think they're showing tremendous momentum in the core business that they have, " Bartlett said. "So I think that long-term the market is good. Short-term I think their business is showing great momentum. We just raised sales and earnings (targets) for the second quarter and for the full year."
Brian Finnerty, of C.E. Unterberg Towbin, sees turnaround potential in chip maker Intel (INTC).
"I think the semiconductor group has bottomed here," Finnerty said. "It seems to have bottomed, and you have got to go with the leader (Intel)."
The views presented here are solely those of the analysts quoted. They do not represent opinions of CNNfn on whether to buy or sell shares of a particular stock.
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