Parnes likes GLW, JDSU
President of Technomart Investment upbeat on BVSN, bearish on Compaq
NEW YORK (CNNfn) - Joseph Parnes, President of Technomart Investment Advisors, said Friday that an expected rise in the demand for fiber optics could boost the value of companies like Corning and JDS Uniphase. Parnes advised investors to get in on both companies if their prices dipped, and at the same time urged investors to avoid Compaq while the stock remains stagnant. |
Every day at 1 p.m. ET, CNNfn viewers are invited to call in to the "Talking Stocks" segment and ask equity-related questions of the guest expert. The toll-free number is 800-304-FNET.
Click here to send your questions to the next guest
Name: Larry, Virginia.
Question: Lucent (LU: Research, Estimates). What is your long-term position on Lucent?
Answer: Lucent has had problems because of lack of fiber optics in its products. The company could be in a slow-growth phase in the coming quarters. Expectancy of management change could be a plus. For that reason, I would accumulate Lucent at this price for the next one to five years.
Name: Reece (Location unknown).
Question: Corning (GLW: Research, Estimates). JDS Uniphase (JDSU: Research, Estimates). What is your short- and long-term forecast on Corning and JDSU?
Answer: Both companies are in the field of fiber optics, and Corning's products have been selling for over two years. These two companies will benefit from high demand in fiber optics. Investors with high-risk tolerance should hold onto these stocks if they already own them. I would buy both if the prices go down. These two are extremely volatile stocks.
Name: Paul, Maine.
Question: Compaq (CPQ: Research, Estimates). What is your outlook for Compaq short- and long-term? Should I hold the stock?
Answer: Compaq being a box maker, we may see its growth rate slow down. It has been trading in the $20 range for the past six months or so. I would not consider this as a growth company to hold. I would avoid purchasing it all together.
Name: Surgio (Location unknown).
Question: Broadvision (BVSN: Research, Estimates). I bought Broadvision at $45. Should I hold it or sell it?
Answer: BVSN is down from its high in the $90 range. Recently it has been selected to be a component of the S&P 500, which makes it mandatory for index fund mangers to include BVSN in their portfolios. I will hold onto the stock and will add on for eventual turnaround to the higher $30s, possibly to the low $40s.
Name: Shelly (Location unknown).
Question: Astropower (APWR: Research, Estimates). What is your short- and long-term outlook for Astropower?
Answer: With energy in demand and the resulting high oil prices, we should definitely expect the new president to establish a new policy encouraging the development of alternative sources of energy. Astropower is one company that would fit into that class. Its price may increase on the expectation of new contracts for alternative energy companies.
CNNfn welcomes your e-mail questions for our "Talking Stocks" guest. Please include your first name, state and one stock question per e-mail. Please 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 Parija Bhatnagar