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Stock picks by the pros
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October 7, 1999: 12:25 p.m. ET
BMC Software, Citrix, Global Marine, Cypress, Intel all win praise
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NEW YORK (CNNfn) - Analysts and money managers showed enthusiasm Thursday for various technology stocks, oil services stocks and a financial services pick. Here are some of the stocks recent guests on CNNfn are buying and why:
Brian Clifford, portfolio manager at SunAmerica Asset Management, is keen on technology, biotechnology and oil service stocks this year.
Among some of the winning hits for investors, he says, would be software company Citrix Systems (CTXS).
"These guys (create) thin-client architecture solutions for small- and medium-sized businesses. This company has had a great year, and I think software might also remain a good play into the fourth quarter."
Clifford also likes BMC Software (BMCS). "These guys (are in the business of creating) enterprise software, the focus is on systems management. They've got a couple of catalysts in front of them, one of which is that on Oct. 19, they're going to launch their e-business strategy. BMC has had a nice move and might be a good place to play in the fourth quarter as people are looking to go back into some of these software names that they've been avoiding all year."
A stock in the financial roster is also high on Clifford's pick list. "I think the financials could be a great place (to find value). They've been under pressure and underperforming of late.
"A name I would highlight in this area," says Clifford, "is insurance card issuer Capital One (COF). They also have a couple of other smaller business, including a cellular phone company. But their main business is credit cards. And credit quality trends are improving. So, too, this is a company that has delivered all year on their earnings line, but the stock has been under pressure due to interest rate concerns."
Finally, Clifford says, "I think this is time to stick to our guns in the energy side. I think that the commodity has seen a sustained rally and we're not going to go back down to $12 a barrel on oil. The way I'm playing it is through the oil service side. Two names I would highlight would be Mariner Health Group (MRNR) and Global Marine (GLM). They've been good performers year to date ... that have pulled back recently."
AMD (AMD) may be down some 40 percent this year, but Larry Borgman, chip analyst at Josephthal and Co., is enthusiastic about the company. Their product "performance reviews have been very favorable. I think they've been limited by the number of other boards that have been available since the Taiwan earthquake. So, not that many machines have been able to make out to the stores. That indicated that some 200,000 units were shipped this quarter, of the 350,000 they've made. They still have a goal to get one million units out before the end of the year."
"We're probably," Borgman says, "going to upgrade (AMD) to a trading buy this morning."
Another Borgman tech pick is well-known chip maker Intel Corp. (INTC). "We've had a buy recommendation on Intel and several of the other semiconductor companies. Obviously," Borgman notes, "the cycle is very favorable right now."
Borgman also likes three or four picks in the technology arena. "We've been favorable towards the programmable logic companies, Lattice Semiconductor (LSCC) and Altera (ALTR). We've also looked at some smaller companies in the area like Cypress (CY), which has been on a rebound this year."
Coming up at 2:45pmET on CNNfn:
David Dreman, market strategist of Dreman Value Management, tells us more about his favorite stocks, Freddie Mac (FRE): "...15 percent growth over the last two decades", and McKesson HBOC (MCK), which represents "good value, earnings should show 15 percent growth."
Prison Realty (PZN) is also a Dreman favorite. The company, says Dreman, has a "good growth rate, (although) the stock has been knocked down sharply."
The views presented here are solely those of the analysts quoted. They do not represent the opinions of CNNfn on whether to buy or sell shares of a particular stock.
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