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Talking Stocks: Battipaglia
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February 4, 2000: 1:35 p.m. ET
Stock strategist at Gruntal & Co. answers your e-mail questions
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NEW YORK (CNNfn) - Each Friday at 1 p.m. ET, CNNfn viewers are invited to call in to the "Talking Stocks" segment and ask the guest expert questions about equities. Here, Joseph Battipaglia, stock strategist at Gruntal & Co., answers your e-mails.
Name: Gigi, Mass.
Question: What is your opinion long-term? I would like to purchase a "budding" CMGI (CMGI: Research, Estimates) or other cheaper stock preference in this communications group.
Battipaglia: Long-term we're very bullish on CMGI. We believe the company has a very bright future. It's hard to put a value on it; assets are real, the potential is quite large.
Name: Ali, United Arab Emirates.
Question: I would like to know your opinion about Lucent Technologies (LU: Research, Estimates).
Battipaglia: We have been given an excellent opportunity to buy the stock again. We're confident that the management can correct their operations problems, and at the same time, we're very excited for their fiber optical area, which might spin off soon. It's a great time to buy some more of this stock at these levels.
Name: Carl, S.C.
Question: Compaq Computer (CPQ: Research, Estimates): What is the reason for this stock's inability to get off the bottom?
Battipaglia: First of all, the PC business has become commoditized, because of constant price pressures in market place. You're basically looking at a mature industry here, which will not give the kind of returns it has given in the past. I would sell Compaq, as well as Dell.
Name: Rick, Vermont.
Question: Do you feel it makes sense to have holdings in both America Online (AOL: Research, Estimates) and Time Warner (TWX: Research, Estimates), or should one concentrate their investment in only one of the companies to be involved in the merger?
Battipaglia: If you already own both companies, stay with both. If you don't, than buy AOL at this time.
Name: Rick, Vermont.
Question: Is it better in your estimation to hold a couple of larger profile stocks such as Oracle (ORCL: Research, Estimates) and General Electric (GE: Research, Estimates) and add to them in your share investment, or to diversify into some of the smaller companies such as Genome Therapeutics (GENE: Research, Estimates) that seem to be making consistent gains?
Battipaglia: Oracle is a business-to-business facilitator on the Internet. We're very bullish on it and we would buy the stock at this level.
Name: Tom, Fla.
Question: What is your short term stock price projection for K Mart (KM: Research, Estimates)?
Battipaglia: I would swap out of Kmart and buy Wal-Mart (WMT: Research, Estimates) instead.
Name: Jac, Texas.
Question: AMR Corp. (AMR: Research, Estimates).
Battipaglia: I would buy airlines here ... I think that jet fuel prices will come off their highs, and airline stocks will do better over next six months.
Name: Am, Calif.
Question: What is your opinion on Pfizer (PFE: Research, Estimates) long- term?
Battipaglia: We're pleased that they will be able to acquire Warner Lambert (WLA: Research, Estimates). They have a very rich pipeline and great fundamentals. We would buy the stock here.
Name: Dr. L., Fla.
Question: Is Amgen (AMGN: Research, Estimates) a good entry around 50s? I plan to hold for a year. How is the future outlook for the company -- any future blockbuster drug in the pipeline?
Battipaglia: Yes, it's a good value to get in. Amgen is a diversified biotech company, relying on new products as well as old products, to bring in sizable earnings. We like it here.
Name: John, Ontario, Canada.
Question: What is your short-term and long-run look
for IBM (IBM: Research, Estimates)?
Battipaglia: Very positive short-term and long-term on IBM. We think they are truly a business Internet support company with strong software and consulting services.
Name: Jack, Germany.
Question: Do you think it is a good idea or too late to buy some big shares at the Amazon.com (AMZN: Research, Estimates)?
Battipaglia: I'm not a fan of their model. Their size is starting to challenge their ability to have efficiency and profitability. I would avoid it.
Name: Fethi, Istanbul, Turkey.
Question: What is your short- and long-term outlook on Nokia (NOK: Research, Estimates)?
Battipaglia: We like them here. Think that cellular technology is proliferating. Also their newly-struck deal for wireless Internet is very positive.
Name: Joel, Pa.
Question: What is your opinion on Xerox (XRX: Research, Estimates)? Is it a bargain at its current price or will it go much lower?
Battipaglia: We have a negative view on Xerox. We don't see any drivers for accelerated earnings developing any time soon.
Name: Amarjit, Calif.
Question: Shall I hold on to Microsoft (MSFT: Research, Estimates) stock or sell it?
Battipaglia: Microsoft is clearly a hold here. Windows 2000 is a successful product for them, and the issues with DOJ will be resolved without any implications for the company's long-term results.
Name: Kim, Canada.
Question: What About Ariba in the business-to-business space?
Battipaglia: Ariba is in the business-to-business software space. We like that whole group. It's definitely a stock to buy.
Name: Bert, Virginia.
Question: How do you explain the drop in the stock of Johnson & Johnson (JNJ: Research, Estimates) in the past three months? What is the near-term outlook for it and others in the drug sector?
Battipaglia: J&J stock has been down recently over concerns about relabeling of a major product. But we're positive on the stock looking forward and we see it going back up to 110. Definitely a BUY at this level.
FN welcomes your e-mail questions for our "Talking Stocks" guest.
Please include your first name, state and one stock question per e-mail. Keep in mind, "Talking Stocks" is for specific stock questions only.
If you do not see an answer to your e-mail here it is because our guest
does not cover the company. 
-- compiled by Antoinette Coulton
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