NEW YORK (CNNfn) - Market strategists reviewed on Friday media and computer stocks, recommending companies such as Walt Disney Co.
As the markets fell at midday, recent guests on CNNfn commented on the stocks they are buying and why.
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STEVEN FORTUNA'S STOCK PICKS:
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DELL
GTW
CPQ
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"Our long-term view on Dell is that it's going to take the Wintel platform and move it upstream as we move more to 64 bids. Our view on Dell (DELL: Research, Estimates) is this, it's a very cheap way to play what I believe to be a longer-term, Internet infrastructure play akin to Sun. So Dell's going to try to take the Wintel platform. And as it moves to 64-bid (ph) next year, move it up into the traditional risk UNIX market where Sun basically dominates. I think it's a very attractive long-term proposition for the company," said Steven Fortuna, PC analyst at Merrill Lynch.
"We believe Gateway (GTW: Research, Estimates) is going to have a terrific holiday season. Our entire fourth-quarter thesis is based upon what we think will be good consumer demand. And Gateway is clearly going to be the leader there. They've got about 60 percent of their revenue in the fourth quarter from consumer. That's basically multiples of their competition. We think consumers are going to go buy PCs once again. If you look at -- for the fourth quarter a year ago. We have terrific call volumes driven by the desire to access the Internet. That has not changed at all."
"Compaq (CPQ: Research, Estimates) we think is also a very good opportunity in the fourth quarter. But we put it behind Gateway. We have the stock rated at two versus Gateway's one rating. Compaq has 20 percent consumer exposure. So about a third of Gateway. And we are impressed with Compaq's ongoing improvement in operational efficiencies and we do like the stock. We think it's cheap in here."
Dell is trading down $5.19 to $23.19 with a 52-week high of $59.68 and a 52-week low of $22.06.
Gateway is trading down $7.01 to $39.19 with a 52-week high of $84 and a 52-week low of $42.15.
Compaq is trading down $1.96 to $25.15 with a 52-week high of $34.87 and a 52-week low of $18.62.
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LINDA BANNISTER'S STOCK PICKS:
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DIS
VIA
TWX
AOL
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"Well, we believe that the near-term outlook for Disney (DIS: Research, Estimates) is -- it's going to be a little bit difficult because 'Millionaire' ratings are down and people are concerned about the advertising market. So, we think it's going to be difficult for the stock to outperform over the near term. However, if you look over the next 12 to 18 months, there's a lot of exciting things going on at the company, including the opening of Disney's California Adventure in February. And what we believe will be a strengthening of the advertising market. So long term, we still like the stock, near term, we think things are going to be a little bit choppy," said Linda Bannister, senior media analyst at Banc of America Capital Management.
"Right now the stock that we like the best would be Viacom (VIA: Research, Estimates). The company has a lot of different distribution outlets and, you mentioned, it's a great way to get advertising dollars. Viacom is basically a must-buy for advertisers. We think the company has a great management team and is doing a lot to control expenses. So Viacom would be our favorite name at these levels."
"We do like Time Warner (TWX: Research, Estimates)-AOL (AOL: Research, Estimates). The closing of the merger [with Time Warner] should prove to be a catalyst for the stock. We don't know when the merger is going to close, but we suspect it will be done before the end of the year. And we think it's going to be the fastest-growing media company over the long term. So, that's definitely one to hold for long-term investors." Time Warner is the parent company of CNNfn.
Disney is trading up 63 cents to $31.75 with a 52-week high of $43.87 and a 52-week low of $23.37.
Viacom is trading up 38 cents to $53.75 with a 52-week high of $76.06 and a 52-week low of $43.43.
Time Warner is trading down $1.96 to $76.88 with a 52-week high of $105.50 and a 52-week low of $57.51.
AOL is trading down $1.38 to $51.30 with a 52-week high of $95.81 and a 52-week low of $37.
-- compiled by Staff Writer Lucy Banduci
* Disclaimer
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