Parnes likes Microsoft
Technomart Investment Advisors president also likes Terra Networks
NEW YORK (CNNfn) - Joseph Parnes, the president of Technomart Investment Advisors, said Friday that Charles Schwab is a good long-term holding, Terra Networks is a good buy, and investors shouldn't worry about a Microsoft split-up. On the other hand, he said investors should be careful with Manugistics.|
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Name: Sam, Arkansas
Question: Charles Schwab (SCH: Research, Estimates). What is your short- and long-term view of Charles Schwab?
Answer: Schwab is one of the largest discount brokers. It's in a retraction mode because of the market conditions of low volume with respect to prior years; however, as the market improves, Schwab will be a beneficiary of revenues derived from fees and commissions. I would buy Schwab on retractions for long-term holding.
Name: Tola, Georgia
Question: Manugistics (MANU: Research, Estimates). Any possibility that this stock will make money in the nearest future? Is the stock price of 45-1/2 justified at this time?
Answer: Manugistics has had problems with regards to earnings growth, and the stock has plummeted to current levels. The latest earnings report is encouraging, but I would wait to accumulate this stock for at least two quarters until I am assured that their profitability is not a one-quarter phenomenon.
Name: Cheryl, North Carolina
Question: Terra Networks (TRRA: Research, Estimates). What is your opinion of Terra Networks for the long term?
Answer: Terra is a Europe-based telecommunications company. Their stock is having a hard time currently, but the expected takeover of Lycos (LCOS: Research, Estimates) will give Terra an entrance into the Internet search engines, which would be a plus. I would be a buyer of Terra at these prices.
Name: Marilyn, California
Question: Motorola (MOT: Research, Estimates). What is your long- and short-term view of Motorola?
Answer: Motorola is a provider of wireless communications, second to Nokia (NOK: Research, Estimates). It has improved its earnings base and is currently in a correction mode. I would accumulate at this price; I see the stock rising to the previous pre-split high of $85.
Name: Curtis, Ohio
Question: Microsoft (MSFT: Research, Estimates). I would like to purchase a mutual fund that owns Microsoft. Can you suggest some funds or how I could locate one?
Answer: Microsoft is faced with the antitrust dilemma, but that should not be a reason for abandoning the stock, even if it's split into two companies. Most mutual funds have positions in Microsoft.
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-- compiled by Staff Writer Mark Gongloff