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Stock picks by the pros
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December 30, 1999: 3:24 p.m. ET
Tech stocks yet to move and some old standbys that may be overlooked
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NEW YORK (CNNfn) - Tech stocks are big news, but there may be more value out there than just the big names. Guest analysts on CNNfn took a look at some underperforming stocks and some old familiar names.
Here are some of the stocks recent guests on CNNfn are buying and why:
Phil Dow, of Daih Rauscher Wessels, took a look at tech stocks that have yet to move. One of his favorites is J.D. Edwards (JDEC).
"It’s a mid-cap company that’s in the enterprise resource planning group and this group had just been hammered by Y2K concerns this year with corporate pressures spending money to Y2K remediation rather than software that enhances their enterprises,” Dow said. "And JD Edwards is in a position to deliver great products to the middle market.”
"A second company that we think has a lot of promise is Parametric Technology (PMTC),” Dow added. "The stock was up pretty dramatically yesterday on a portfolio manager’s comments, but this is a company that has redesigned the computer-aided design side of the business. They have a new product called Windchill that helps conventional manufacturers, those that manufacture cars and airplanes and rockets, to not only design those computers with a benefit of computers, but also the manufacturer and supply chain, as well.”
John Manley, of Salomon Smith Barney also said he likes the tech sector, but takes an old-school approach.
"I think technology is still a place to be hooked, there’s a lot of growth there, the fundamentals are impeccable, it’s a question of what you pay for it,” Manley said. "So if I can get stocks at close to a market multiple, which is what I’m paying for IBM (IBM) and Hewlett-Packard (HWP), why not, I mean, these are great cutting-edge stocks. Or if you’re willing to look through fluctuations and margins, take a look at Motorola, for example, which has been a phenomenal stock, no question about it.”
In banking, Manley said he sees Chase Manhattan (CMB) as a very well placed company.
"I look at Chase Manhattan, which I think is a phenomenal story,” Manley said. "I mean, where do you want to have exposure, you want to have exposure overseas, they have huge exposure overseas. The Fed is raising rates, but we have the financial sector down to a 45 percent discount to the market on P/E, which is post-crash ‘87, which is 1994, which is 1990, very good values.”
With Asia recovering, Chris Grisanti, of W.J. Spears, Grisanti & Brown would put money into AK Steel Holdings (AKS). (500K WAV or 500K AIF)
Grisanti also likes Intel (INTC) and Delphi Automotive (DPH).
"Intel historically over the last 10 years, if you bought the stock when both revenues and margins were improving, you had a great investment,” Grisanti said. "And that’s what we think is going to happen when they announce fourth quarter earnings on January 13th. So not a complicated play and a good quality company.”
 
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