Personal Finance > Investing
White bearish on Motorola
October 6, 2000: 5:39 p.m. ET

President of Avatar has concerns about Ericsson, Texas Instruments
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NEW YORK (CNNfn) - Charles White, president and portfolio manager, Avatar Associates, said Friday that investors graphicare better off avoiding Motorola. In the wireless communications sector, White recommended Nokia as a safer bet.

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Name: Danny (location unknown)

Question: Texas Instruments (TXN: Research, Estimates). What is your opinion about Texas Instruments?

Answer: Texas Instruments has been under pressure with the rest of the group, and while we prefer Intel (INTC: Research, Estimates), we think TXN is an OK second choice.

Name: Kevin, Georgia

Question: Yahoo (YHOO: Research, Estimates). AOL (AOL: Research, Estimates). Yahoo, AOL have never missed estimates. So why is the stock down?

Answer: I think the problem with Yahoo is more of a valuation question and the business plan behind it is being called into question. We are avoiding the stock. AOL is being impacted by uncertainty on the status of the transaction to buy Time Warner. Longer term, the merged company will be the model for future transactions between Internet and content providers. [AOL is set to merge with Time Warner, the parent company of CNNfn.]

Name: Nancy (location unknown)

Question: Ericsson. (ERICY: Research, Estimates). I would like to know what you think about Ericsson.

Answer: There are some valid concerns about growth in handsets but we believe that growth will meet or exceed expectations. We prefer to play the sector through Nokia (NOK: Research, Estimates).

Name: Dallas (location unknown)

Question: Motorola (MOT: Research, Estimates). Citigroup (C: Research, Estimates). I sold Motorola at $35. It's down to $27.50. How much lower do you think it can go? Also, I own some Citigroup and look to add to my position. Should I do that?

Answer: I still think MOT is an "avoid" and there are better players in their sector. I would look for competitors to outperform MOT in any rebound. Longer term, Citigroup should be a core position. At this point I would wait to see the quarterly result before adding to a position.

Name: Mike, New York

Question: Are REITs an attractive idea now?

Answer: REITs have performed very well after a disastrous year last year. This is not a good time to be initiating positions in this sector.

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