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Stock picks by the pros
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May 3, 1999: 1:13 p.m. ET
With rise of cyclicals, some see value; others look back to growth stocks
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NEW YORK (CNNfn) - Last week, cyclical stocks like Alcoa and International Paper rallied for a change while shares in growth industries like technology and pharmaceuticals faltered.
In a market where five days signal a trend, some money managers already are seeking value in these newly "beaten down" growth companies' shares. Others, meanwhile, say there are still bargains in the under-looked manufacturing and oil sectors -- despite a recent rise.
Vince Farrell, chief investment officer of Spears, Benzak, Salomon & Farrell, says some growth stocks are now cheap.
Specifically, Farrell likes Warner-Lambert (WLA). He says that while the stock's price-to-earnings ratio still makes it expensive by traditional valuation methods, it's cheap relative to other drug makers.
"I do think Warner-Lambert looks very good," Farrell told CNNfn.
Alberto Vilar, president and portfolio manager of Amerindo Investment Advisers, began acquiring Internet-related stocks before they captured investor attention. Unfazed, Vilar sees last week's Nasdaq slide as a time to buy even more tech firms. Despite his favorite --Amazon.com -- having no earnings, Vilar likes the e-commerce giant for its eventual profitability.
"They are going to be the electronic Wal-Mart (WMT) of the Internet," he told CNNfn. Being bullish about the Internet sector, Vilar likes Inktomi (INKT) for its role in online infrastructure, and @Home (ATHM) as ways to capitalize on the Internet cable delivery business.
Paul Cook, portfolio manager at Munder Capital Management, also says there are plenty of reason to look at technology companies, particularly those tied to, but not directly related to, the 'Net.
His largest holding, Microsoft (MSFT), isn't thought of as an Internet firm. But the software giant has online exposure, both through its ownership of Hotmail, the Web-based e-mail service, and through its interest in broadband cable provider MediaOne (UMG).
"We think there is strong upside potential for companies exposed to the Internet," Cook told CNNfn.
That said, Cook likes Infospace.com (INSP), the Internet portal, for what he calls its solid management.
Although Cook sees the potential for e-commerce as great, he won't buy what he says is the best e-commerce company, Amazon.com.
Cook says it's too expensive.
"E-commerce is the killer application of the Internet," he said. "And Amazon.com is just taking names out there."
Douglas Altabet, managing director of Matrix Asset Advisors, also is seeking value.
That's why he likes the beaten down chip sector, and Arrow Electronics (ARW) in particular.
He also casts an eye toward Tupperware (TUP) for its projected ability to prosper as the global economy recovers.
Speaking of the downtrodden, Altabet sees value in oil stocks, and Schlumberger (SLB) in particular, which he calls the Cadillac of oil drillers. Shares in New York-based Schlumberger are down 25 percent in the last 52 weeks. 
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