Bruce Mushial of
June 9, 2000

Opening Remarks

Sage Host: Please welcome Bruce Mushial, senior technical analyst at 

Bruce Mushial: Good morning! This morning I'd invite you all to submit Nasdaq Composite Index [$COMPX] companies and I'll offer my opinion on those stocks using a combination of fundamental analysis or proprietary technical models. 

The Chat

Question: I see nothing but good from Cisco Systems, Inc. [CSCO]. When will it move up? Short, long?

Bruce Mushial: Cisco is one of the bellwether stocks. Investors are avoiding stocks without earnings. Cisco will clearly be one of the stocks that attracts funds. They put in a nice bottom on May 22 and it looks like it should move higher. Investors can expect $75 within two weeks.

Question: What do you expect from Lucent Technologies Inc. [LU], short/long-term?

Bruce Mushial: Lucent is also a bellwether stock. Earnings look strong over the coming year. Price-to-earnings ratio (P/E) is reasonable. Investors could see $70 within two weeks.

Question: Do you think QUALCOMM Incorporated [QCOM] has stopped taking a beating?

Bruce Mushial: The provided a fax alert to clients yesterday stating QUALCOMM looks attractive.

Question: Any thought on Internet Capital Group, Inc. [ICGE]? Do you think it can test its old high by year-end?

Bruce Mushial: Investors are a little cautious of companies with limited earnings or no earnings. Internet Capital is linked to companies that are in the early growth stages and may fall into that category. It'll probably move up from here; it has a long way to go to retest old highs.

Question: If you were going to invest $2,000 in the stock market today, where would you consider putting it? 

Bruce Mushial: This is for a Roth Individual Retirement Account (IRA). Two thousand dollars is a little small for individual stock investment. If the investor has more than ten years until retirement, I'd pick an aggressive growth mutual fund. As the account grows, I'd make sure it is with a trustee that allows you to pick individual stocks.

Question: Any opinion on Echelon Corporation [ELON]?

Bruce Mushial:  I don't regularly follow Echelon. The company is anticipated to earn nineteen cents per share for the year ending 2001. At that time it'll have a (P/E) over 300. Investors are shying away from stocks in this range. Currently the only analysts rating on it is a hold.

Question: Who is your current Spotlight Stock for this week? Who have been some of the other companies who have been in the Spotlight with

Bruce Mushial: A recent Spotlight Stock was VerticalNet, Inc. [VERT]. We recommended it on May 30 at $34 and change. We got clients out three days later with an 18 percent gain. In this last issue of the Stock Traders Press, we had nine stocks that hit target during the week with gains averaging 20-30 percent. Most of these were held for roughly two weeks.

Question: What is a "proprietary technical model"? Does every company have a "model" per se?

Bruce Mushial: Many software packages provide canned models. Proprietary models have been designed internally by that company and its analysts for their own use. It is to try to give them an advantage over the indicators everyone is using. I spent a portion of my time building my own technical models.

Question: Will, Inc. [AMZN] and America Online, Inc. [AOL] make a comeback?

Bruce Mushial: For the day trader, is a very attractive trading vehicle. They have a very attractive business model and they have created a framework where they can market virtually any product that they find attractive worldwide over the Internet. is a very attractive stock with an excellent business model. They could be at $80 within a couple months.

Closing Remarks

Sage Host: Thank you for joining us today, Bruce! We appreciate your insights!

IBruce Mushial: Investors with further questions can check out our home page at or they can e-mail me personally at [email protected]. See you all next time.

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Thanks to SageCrystl for hosting this chat.

First Editor: SageGrits
Final Editor: SageMojo

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