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Melcher avoids AOL
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August 3, 2000: 3:27 p.m. ET
Balestra Capital president also says Wal-Mart is good only for the long haul
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NEW YORK (CNNfn) - Jim Melcher, president of Balestra Capital, said on Thursday he avoids America Online and other "large, popular, high-tech  stocks," Wal-Mart is a good stock only for the truly long-term investor and Neurobiological Technologies is a good candidate for acquisition by a larger drug company in the near future.
Every day at 1 p.m. ET, CNNfn viewers are invited to call in to the "Talking Stocks" segment and ask equity-related questions of the guest expert. The toll-free number is: 800-304-FNET.
Click here to send your stock questions to the next guest.
Name: Edwin of Lima, Peru.
Question: America Online (AOL: Research, Estimates). Is it a good time to buy AOL?
Answer: I am avoiding all of the large, popular, high-tech stocks because of extreme valuations.
*Note: AOL is in a deal to buy Time Warner (TWX: Research, Estimates), CNNfn's parent company.
Name: Unknown.
Question: Wal-Mart (WMT: Research, Estimates). How good of an investment is Wal-Mart stock?
Answer: A good company, but an expensive stock. Good only for the true long-term investor.
Name: Gary of Farmville, Va.
Question: Nokia (NOK: Research, Estimates). Please explain the sudden drop in Nokia. Is something else going on besides their future earnings warning?
 Answer: The stock drop is caused by a perceived slowing of the company's growth rate. The company will still grow at a good rate, but the valuation remains very high.
Name: Tom of California.
Question: What technology stocks do you recommend?
Answer: Wave Systems (WAVX: Research, Estimates), Scientific Learning (SCIL: Research, Estimates) and Neurobiological Technologies (NTII: Research, Estimates).
Name: Rhonda of California.
Question: Neurobiological Technologies (NTII: Research, Estimates). I bought this stock following your recommendation, as well as doing my own research. Would you give me a short- and long-term outlook?
Answer: The company has finished phase two and is in phase three trials for a drug that looks to be the most effective treatment for severe Alzheimer's. While it is not a cure, it makes a huge difference in patients' ability to function. The same drug appears to be an effective treatment for diabetic neuropathy. I suspect that the company will be bought by a large drug company within a year or two.
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If you do not see an answer to your e-mail here, it is because our guest does not cover the company.
--compiled by Staff Writer Mark Gongloff
* Disclaimer 
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