Magazine says high-tech shares aren't measured like most stocks

The Ticker

February 26, 1999|By JULIUS WESTHEIMER

WANT TO cash in on high-tech stocks? "They may have tremendous potential," says Black Enterprise, March, "but how do you tell the difference between a sure thing and a pipe dream?"

"The simple fact is this: Technology shares just aren't measured like other stocks.

"Many software, hardware, semiconductor and Net shares just don't fit the neat, understandable price-earnings multiples that we've learned to use as a guide."

The article suggests that investors stick "to companies that dominate their industries."

Among Internet stocks, the article says, the leader is America Online Inc., with honorable mention going to MCI-Worldcom Inc. When it comes to computer networking, first place goes to Cisco Systems Inc., followed by Lucent Technologies Inc.

More leaders: In software, Microsoft Corp.; in semiconductors, Intel Corp.; in computer hardware, Dell Computer Corp., followed by Compaq Computer Corp.

"If you see high-technology stocks as a larger part of your portfolio, consult your financial planner, conduct the research and, if you're not the adventurous sort, stick with established firms," the article concludes. "That will keep you from short-circuiting your long-term investment strategy."

SPLASH: Did you realize that bottled water consumption is increasing 10 percent annually -- triple the growth rate of the much larger but more mature soda business?

Business Week, March 1, says, "There are a handful of premium brands, such as Evian and Perrier. But the biggest, Poland Spring, has only a 7.5 percent share. It's a tempting market for both Coca-Cola Co. and PepsiCo Inc. Pepsi jumped in two years ago. Now Coke is taking the plunge."

Pub Date: 2/26/99

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