Personal Finance > Investing
Parnes likes Broadcomm
November 24, 2000: 3:36 p.m. ET

Technomart Investment president upbeat on Network Appliance
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NEW YORK (CNNfn) - Joseph Parnes, president of Technomart Investment Advisors, on Friday picked Broadcomm, a "volatile stock," but as a good long-term prospect for investors to consider. Parnes also was upbeat on Network Appliance.

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Name: Unknown

Question: Broadcom (BRCM: Research, Estimates). Is the recession really coming? Does Cisco's inventory affect Broadcom a lot?

Answer: Broadcom is a specialty chip maker which just concluded a litigation settlement with Intel (INTC: Research, Estimates). The stock is down because of market conditions and possible slower earnings growth. However, this is a good opportunity to get into this volatile stock, if your objective is for a time frame of one-to-five years and you have high risk tolerance.

Name: Allen, Canada

Question: Network Appliance (NTAP: Research, Estimates). I am taking a big hit on NTAP. Is it too late to sell to cut loss?

Answer: NTAP is a software provider which has been hit hard in the current market because of the possibility of slower revenue growth in 2001. I would take advantage of the current sell-off and would accumulate for the a time frame of one-to-five years. However, I would place my entry point at $85-to-$89, to assure that the rebound from the current lows is sustainable.

Name: John, Ohio

Question: LTV Corp. (LTV: Research, Estimates). Given the steep drop in the value of this stock, is this a good time to buy? What is the short -and long-term outlook for this firm?

Answer: Basic material providers such as steel companies are having a hard time because of competition and price cutting by foreign producers. I would avoid investing in basic materials at this time.

Name: Masuma, Tanzania

Question: I am thinking about investing. What do the financial statements of a company tell me?

Answer: Depending on the company, financial statements are good tools to see the health of a company. You want to make sure that the company has adequate cash to finance its basic operations and that the debt ratio is comfortable, normally above 2.00+, to give assurance that the company is financially strong and can obtain financing for its endeavors.

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--compiled by Parija Bhatnagar