|
Stock picks by the pros
|
 |
March 6, 2000: 12:38 p.m. ET
AMD, Aspect, MedImmune, Citigroup, and Analog Devices win favor
|
NEW YORK (CNNfn) - Analysts and money managers named tech stocks, including one biotech, among their favorites this Monday, although a European media company and a financial services giant also came in for praise.
Here are some comments on the stocks that recent guests on CNNfn are buying -- and why:
 "Intel (INTC: Research, Estimates) has been doing a great job," said semiconductor analyst Mona Eraiba, Gruntal & Co., "but Advanced Micro Devices (AMD: Research, Estimates) [ is also doing well], in contrast to the situation a year ago, when they had difficulty delivering their products, difficulty producing their products. I think that situation is behind them. It's about a year since we started to see a big upturn [in demand for chips]. It's not just a cyclical upturn. I think the impact of the Internet is very significant for the industry, because you've seen massive investment in the infrastructure of the telecom infrastructure, in communications worldwide, and also new applications in wireless, new applications in networking, new applications in devices, information appliances, etc. There is a broad range of new markets that are becoming very significant. I think these industries are going to accelerate over the next year or so, and we're going to continue to see very strong demand for the next two years. We actually rate Advanced Micro Devices as 1.2, which means: immediate buy, outperform, long-term market performer."
Aspect Communications (ASPT: Research, Estimates) "represents roughly seven percent of [our] portfolio," said Greg Hymowitz, money manager, Entrust Capital, "and we're still adding to the position with new money that comes in. This is a company that's dominating their space, providing effective customer service. Most consumers' experiences on the Internet are very negative experiences because there's really not a lot of focus on thorough customer service. Aspect Communication provides a software that allows for customer service to take place more effectively on the Internet, whether through WebTalk or e-mail or faxes, so that's what they're focused on. And they're dominating that space."
SBS Broadcasting (SBTV: Research, Estimates) is another Hymowitz pick. "SBS is one of the largest European media companies, and what they're doing is very similar to what CBS and other media companies here have done, which is - they've effectively exchanged their inventory, their excess inventory, for warrants and equity positions in some Internet companies. The Internet is just really starting to take off in Europe, and SBS is leading that charge."
 Financial services stock Citigroup (C: Research, Estimates) is the last name on Hymowitz' short list. "Citigroup is a traditional financial company, yet they're really focused dramatically on how technology and the Internet affects their business," he said. "Also, if you want to pay emerging markets around the world, what better way to play from a financial perspective than through Citigroup?"
 Biotech stock MedImmune (MEDI: Research, Estimates) is David Braverman's "stock of the week." The reason, said the senior investment officer at Standard & Poor's, is the company's principal product, a drug called Synagis, an injectable monoclonal antibody. It fights something called respiratory syncytial virus, RSV infection -- and what that is, it's the most common cause of bronchiolitis and the most common cause of pneumonia in infants and toddlers. So this is a big deal. And it's the only drug that has FDA clearance to fight this virus."
'Pros' bonus: Hear further comment on MedImmune (MEDI: Research, Estimates) from David Braverman, senior investment officer, Standard & Poor's.
Select: [267KB WAV] or [268 KB AIFF]
MedImmune is currently trading in the $200 range. "We think you can get another 40 percent out of it," said Braverman, hitting 280. And if it gets to 300, we'd say let's get out and find something else for you. But we think that it's a hot area; [$280] is a six- to 12-month price target."
 Braverman also likes Analog Devices(ADI: Research, Estimates), saying "Analog Devices makes digital chips that go into cell phones, and there's nothing more hot than that at the moment - you've got cellular phones, which, obviously the world wants to own, plus you've got the chips that go into these phones. These are really the places to be right now."
 "One of the issues I'm looking at this week is Crayfish [which will trade under the symbol CRFH]," said Richard Peterson, IPO market strategist, Thomson Financial Securities Data, "and Crayfish price estimates -- initially between 12 and 14 - was bumped up to an anticipated 22 and 24. I think it's appropriate that tomorrow is Super Tuesday as well as Fat Tuesday - there are probably some super IPOs out there that will fan up people's portfolios.
"Crayfish is a play on small- to mid-sized businesses in the Japanese Internet market," Peterson said. "It provides e-mail services called Hitmail to that marketplace. As I've already mentioned, they've already raised the price range up higher. It's a good harbinger of where the price will go. It should come out in the high 20s, and by the first-day close, will probably end in the upper 40s."
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. 
--compiled by Tatiana D. Helenius
|
|
|
|
|
|
Track your stocks
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
.
