Opening Remarks
Sage Host: Please welcome Bruce Mushial, senior technical
analyst at StockTradersPress.com.
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
StockTradersPress.com 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 StockTradersPress.com?
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 Amazon.com, Inc. [AMZN]
and America Online, Inc. [AOL] make a comeback?
Bruce Mushial: For the day trader,
Amazon.com 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. Amazon.com
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
StockTradersPress.com or they can e-mail me personally
at [email protected].
See you all next time.
* * *
Thanks to SageCrystl for hosting this chat.
First Editor: SageGrits
Final Editor: SageMojo
Transcript has been modified by Sage Online. Neither
Sage Online nor its editors guarantee the accuracy
of content or necessarily support the opinions expressed therein.
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