Wait on Wal-Mart: Parnes
Technomart Investment Advisors president also says to sell WorldCom
NEW YORK (CNNfn) - Joseph Parnes, president of Technomart Investment Advisors, said on Wednesday investors should avoid Wal-Mart while high interest rates crimp the retail sector, Keane is still trying to get out of Y2K mode and competition will hurt WorldCom.|
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Name: Carmen, Mississippi
Question: Wal-Mart (WMT: Research, Estimates). As a Wal-Mart associate, I am able to buy a small amount of stock with each paycheck, and since I first started buying Wal-Mart stock this way, I've heard a lot about a term called "stock split." Can you explain what this means and when it takes place? Also, do you think Wal-Mart stock will split this year?
Answer: Stock splits occur when companies decide to split the shares of stock outstanding. For more information, go to stocksplit.com. Wal-Mart split its stock last year, so I don't think they'll split again for some time. Wal-Mart is the largest discount retailer in the U.S. and holding well in the current market environment. Interest-rate increases will have a negative effect on consumer spending. I would hold off buying Wal-Mart at this time. If you're a holder, I would continue to hold on to it.
Name: Bob, Illinois
Question: Keane (KEA: Research, Estimates). What should I do with Keane stocks? They've been down for a year after several years of stellar growth.
Answer: Keane is an enterprise software provider, and a victim of Y2K. They don't have any other products but Y2K products. They're trying to add products, but that normally takes time. I would sell.
Name: Jason, North Carolina
Question: WorldCom (WCOM: Research, Estimates). What will it take for WorldCom to break out of its recent $10 trading range?
Answer: WorldCom has been in a sell-off mode because of the failed merger with Sprint (FON: Research, Estimates). WorldCom is now a long-distance company, and because of competition in long distance, earnings prospects won't be what they've been in the past. I would be a seller.
Name: Gary (location unknown)
Question: VoiceStream (VSTR: Research, Estimates). Should I buy, sell or hold?
Answer: I would be holding VoiceStream because of the possible merger with Deustche Telekom.
Name: Laura, Colorado
Question: Psinet (PSIX: Research, Estimates). What is your opinion on this company? Should I buy at its current low price?
Answer: Psinet has been hit hard. I would accumulate positions and wait for a turnaround in technology/internet stocks.
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-- compiled by Staff Writer Mark Gongloff