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Hyman favors EchoStar
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September 28, 2000: 5:35 p.m. ET
Weatherly Securities investment strategist also likes Abbot Labs and CMGI
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NEW YORK (CNNfn) - Barry Hyman, chief investment strategist, Weatherly Securities, said Thursday that the merger speculation involving Newscorp and Gemstar bodes well for EchoStar and the satellite broadcast sector. Hyman also gave a positive forecast for Qualcomm and CMGI.
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Name: Robert, New Mexico
Question: EchoStar (DISH: Research, Estimates). What is the 6-,12-, and 18-month outlook for DISH?
Answer: DISH in the satellite broadcast sector is very reasonably valued at these prices. With the speculation that Newscorp may purchase Gemstar, it brings more visibility to DISH. I think the long-term prospects are favorable.
Name: Brenda, Mississippi
Question: Abbott Laboratories (ABT: Research, Estimates). I want to know what you think about Abbott Laboratories? It seem that the news of a promising HIV drug should have moved the stock more, and that it should have sustained the higher stock price longer.
Answer: This has been a long out-of-favor pharmaceutical company that has been undergoing restructuring over the last two years. It now has some new products including this potential AIDS drug that could add some new excitement. Don't be concerned that it did not react to this story because it had moved higher in anticipation. Any pullbacks to the low 40s is a reason to buy.
Name: Robert, Texas
Question: Would you recommend the mid-cap 400 value, growth, or total index?
Answer: The recommendation here would be as a diversification measure against owning only large-cap stocks. I would look first at the growth part of that index as many of these stocks are still reasonable valuations compared to the excessive 100-plus PE we see in the big caps.
Name: (unknown)
Question: Qualcomm (QCOM: Research, Estimates). What is your short-, medium-, and long-term outlook for Qualcomm?
Answer: I believe you have seen the low in Qualcomm for this cycle. The debate of whether CDMA will be used in China seems to be favoring Qualcomm's position.
 While no definitive agreements have been signed, I believe political pressure is making it easier for the acceptance of Qualcomm's technology. Don't look for a repeat to $200 per share, but a reasonable target of $100-to-$110 is achievable.
Name: Alex, Pennsylvania
Question: CMGI (CMGI: Research, Estimates). What do you think about CMGI?
Answer: The Internet incubator sector, of which CMGI is the biggest, still has some fundamental long-term problems. That is exemplified by the recent restructuring of CMGI into a purer operating company. It now demands to be valued as a more traditional company and the previous standards no longer exist. I do believe that as the blue chip in the sector, it will survive and eventually rally with the market. That makes me positive in the short term and neutral in the long term.
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-- compiled by Parija Bhatnagar
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