Some high-technology stocks for value investors

The Ticker

January 10, 2001|By JULIUS WESTHEIMER

Want to buy some high-technology stocks cheap?

Personal Finance says, "Many techs, once the market's darlings, are off over 50 percent from their highs and while valuations remain in the stratosphere, many are trading at multiples even `die-hard' value investors shouldn't pass up."

The newsletter says these stocks are "Rebound Ready": Applied Materials Inc., Arrow Electronics Inc., CNET Network Inc., Flextronics International Ltd., Gateway Inc. and International Rectifier Corp.

COOL IT: "Keep cool. People make their worst mistakes in markets like this. They dump stocks they should never dump. They buy stocks they should never buy. Sit back and realize that if you own high-quality stocks, you'll come out O.K." (Jon Burnham, chief executive of the Burnham Fund, in this week's Barron's)

GOOD NEWS: "Periods following Fed interest rate easings were great for investors," says Ned Davis Research. "Since 1980, the S&P 500-stock average climbed 19 percent on average in the year after a rate cut."

STOCK WATCH: "After the worst year in two decades, we expect a 15 percent return in the S&P 500 this year. Sentiment is slightly pessimistic - a positive." (Q-Market Strategy)

"The fact that many stocks continue to plummet on earnings warnings is a sign that profit shortfalls remain one of the biggest risks to investors." (Dow Theory Forecasts)

"The United States is about to fall into the Great Recession of 2001. We lack faith in the Greenspan Gangsters' ability to save Wall Street." (Value View Stock Report)

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