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Stock picks by the pros
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December 17, 1999: 11:27 a.m. ET
Big tech firms Cisco, Oracle, EMC, Dell, Sun all get the nod
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NEW YORK (CNNfn) - Just like the investors who hang on their words, the nation’s analysts and money managers found technology stocks to their liking Friday.
Here’s what stocks recent guests on CNNfn are buying and why:
Larry Seibert, portfolio manager at Barrett Associates, is sticking with Cisco Systems (CSCO) for what he sees as the computer network provider’s tremendous growth.
"We look forward to the Cisco story, they could triple their earnings by 2003,” Seibert said. "Optical markets are huge, the networking markets are growing leaps and bounds.”
Further, Seibert said a recent survey indicated companies are expanding their bandwidth capacity by about two times next year, suggesting strong demand for networking providers
Demand for Cisco stock has clearly been strong; its shares are up 145 percent in the last 52 weeks.
Jeff Davis, chief investment strategist at State Street Global Advisors, likes EMC, for what he sees as the data storage firm’s upside potential.
"EMC (EMC) is where a lot of the enterprise data is going to be stored,” Davis said. "There are some smaller competitors that are out there that are very good. But EMC really has great execution, great financials, is a consistent company, and a lot of the big, big systems are going to be installed on their data storage devices, and so expenditures might go in their direction.”
After a week of stellar stock gains following a blowout earnings report, Oracle (ORCL) is still one of Davis’ top picks.
"Oracle, like many other great companies in other industries, knows how to execute well, and has paid (its) dues in the international marketplace,” Davis said of the database software maker. "They’ve taken advantage, in fact, of the (Asian financial crisis) of last year to expand their operations and to make headway. So what was a disadvantage in `98 is of great advantage in `99 (and) going forward.”
Ron Hill, partner at Brown Brothers Harriman, sees the rally in technology shares finally broadening small and medium-sized companies.
Still, he’s sticking with the big companies such as Dell Computer (DELL), Sun Microsystems (SUNW) and Texas Instruments (TI).
"These folks still show good earnings momentum and a lot of positive support overall from the Street,” Hill said. "And you know, again, a lot of them have a lot to do with the Internet.”
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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