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Stock picks by the pros
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July 6, 2001: 3:28 p.m. ET
Analysts look at long term, suggest stocks in energy, software sectors
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NEW YORK (CNNfn) - Another day of profit warnings sent the Dow and Nasdaq into a tailspin Friday, with tech shares taking the brunt of the selloff. With the markets in a slide, analysts and money managers appeared on CNNfn to suggest some stocks for bargain hunters looking to bolster their portfolios.
Companies in the energy, drug, and microchip sectors were mentioned as possibilities for coming off price bottoms.
Charles Payne, president of Wall Street Strategies, says patience is essential when taking a position in a volatile market. "I think that one of the problems that lingers with us from the last five years, with every one jumping into the market, is that we need instantaneous results," he said.
For some results in the long term, Payne suggests positions in Enron and Calpine.
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 PAYNE'S PICKS
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Enron (ENE)
Calpine (CPN)
Eli Lilly (LLY)
Internet Security Systems (ISSX)
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Payne also finds Eli Lilly in an interesting situation. "The stocks has come down pretty hard, but they have the sepsis treatment out there. I think it is going to make it through the Food and Drug Administration," he said.
Finally, Payne likes Internet Security Systems, which was "sawed in half" after an earnings warning earlier in the week. "I think that is the place you want to be, if you are talking about stocks on weakness. Looking at the next three-to-five years, Internet Security has huge upside potential."
Shares of Enron (ENE: down $0.94 to $49.00, Research, Estimates) are trading in a 52-week range of $90.75 to $42.35.
Calpine (CPN: up $4.82 to $42.18, Research, Estimates) shares have traded between $58.04 and $29.00 in the last year.
Shares of Eli Lilly (LLY: down $0.47 to $75.13, Research, Estimates) are trading in a 52-week range of $108.93 to $66.62.
Internet Security Systems (ISSX: down $2.14 to $27.84, Research, Estimates) shares have been between $$108.75 and $19.75 in the last year.
Edward Hemmelgarn, portfolio manager with Shaker Investments, is looking at the long term as well. "Aclara BioSciences is a good company. It has very good chip technology that I think will be in demand for the next five-to-10 years," he said.
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HEMMELGARN'S PICKS
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Aclara BioSciences (ACLA)
MetaSolve Software (MSLV)
Microchip Technology (MCHP)
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MetaSolv Software is another recommendation from Hemmelgarn. "I like it very much from a long-term standpoint. Given the current economic slowdown, it's getting hit with some difficulty, but it is a company that is making money with about $4 per share in cash," he said.
The last play from Hemmelgarn is Microchip Technology. "Right now we're kind of at the bottom of the semiconductor industry downturn," he observed. "Over the next two years, microchips should certainly perform quite well, and I wouldn't be surprised to see this stock hit $70 over the next couple of years."
Alcara BioSciences (ACLA: up $0.10 to $8.90, Research, Estimates) shares have traded between $66.00 and $4.31 in the last year.
Shares of MetaSolv Software (MSLV: down $0.17 to $7.65, Research, Estimates) are trading in a 52-week range of $55.50 to $6.75.
Microchip Technology (MCHP: down $0.86 to $29.57, Research, Estimates) shares are in a 52-week range of $50.08 to $19.37. 
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