Bruce Mushial of StockTradersPress.com
July 7, 2000
Opening Remarks
Sage Host: Please welcome Bruce Mushial, senior
technical analyst with StockTradersPress.com.
For more information visit stocktraderspress.com.
Bruce Mushial: Good morning. What I'd like
to do today is stick to the format we've been using previously,
and that is to have members provide stocks that they'd like
me to comment on from a technical and fundamental basis.
Before we do that, I'd like to share a few stocks that members
should find interesting and our firm believes will move
higher. First one of those is Symantec Corporation
[SYMC]; Also, VerticalNet, Inc. [VERT],
and KLA-Tencor Corporation [KLAC].
We also like Computer Associates International,
Inc. [CA]. We believe the stock was oversold
on recent bad news. Three more stocks that look interesting
are Vishay Intertechnology, Inc. [VSH],
Lowe's Companies, Inc. [LOW],
and Arrow Electronics, Inc. [ARW].
Now if there are some stocks that members would like me
to look at, let's go ahead.
The Chat
Question: What are your thoughts on today's employment
report, and what effect will it have on the market going
into earnings season?
Bruce Mushial: The employment report was
very positive. There's a good chance the Federal Reserve
will limit any tightening in August. At this point, they're
probably concerned about creating a hard landing for the
economy. We need to keep in mind that a slower economy will
reduce revenue in earnings numbers. In general, we should
see higher to sideways prices into the fall.
Question: Red Hat, Inc. [RHAT]
seems to have everything going for it, but continues to
drop. What do you see for the next three months?
Bruce Mushial: There's a perception with
Red Hat that they sell a product that is
available for free. I wish they had some true proprietary
software applications. The stock right now is towards the
bottom of its range, and probably longer-term is a fairly
decent investment.
Question: Are Powerwave Technologies,
Inc. [PWAV] and Razorfish, Inc.
[RAZF] good buys?
Bruce Mushial: I've been a fan of Razorfish.
Right now the stock looks to be putting in a long-term bottom.
There's a good chance of upside potential here. Back in
February, Razorfish was trading at $55; now it's
at $17. Powerwave has five strong buy recommendations
and two buy recommendations, which would make it attractive.
Question: What is your opinion on Xerox
Corporation [XRX]?
Bruce Mushial: Xerox is having to
remake itself, and they're actually having to do that a
couple of times. They probably have the worst behind them.
They're under new leadership. Long-term the stock is probably
attractive.
Question: What is your opinion on Rare
Medium Group Inc. [RRRR]?
Bruce Mushial: Rare Medium
is a nice stock. The short and long-term [is] the stock
will move higher from current levels, I think. As a part
of the semiconductor and computer sector, the stock gets
bounced around a lot. The company is expected to turn a
profit the next fiscal year, which is always a good sign.
Once companies are making profits, they attract a lot more
investors.
Question: What do you think of ArthroCare
Corporation [ARTC]?
Bruce Mushial: ArthroCare yesterday
shot up $10 intraday, which is great for a stock that started
at $25. Our firm is bullish on ArthroCare. They have
a patented technology that allows surgeons to operate in
a way that is more precise and allows for a speedier recovery.
Question: When do you think the business-to-business
stocks will move again? Which one is your pick?
Bruce Mushial: I don't have any real favorites,
but I'd be happy to comment on any that members might hold
or be looking at.
Question: What are your comments on CMGI,
Inc. [CMGI], Metricom, Inc.
[MCOM] and Silicon Storage Technology,
Inc. [SSTI]?
Bruce Mushial: I don't follow Metricom
or Silicon Storage. CMGI I do like.
It may take this sector some time to come back. Again investors
are looking very closely at profitability. A lot of the
stocks that ran up to lofty levels in March did not have
earnings and probably only those with solid tangible earnings
will rise in the market.
Question: How do you select your top picks for the
week?
Bruce Mushial: We start with 1,500 stocks
that we screen using technical and fundamental analysis.
We frequently create a pool of stocks that look like they
will hit our 20 to 30 percent gains within a one month target
and then we further screen the group based on potential
earnings and other fundamental criteria.
Closing Remarks
Sage Host: Thank you for joining us today,
Bruce! We appreciate your insights!
Bruce Mushial: Thank you for allowing me
this opportunity. We'll use the same format next week. Anyone
that wants to know more about our firm can visit our Web
site at stocktraderspress.com.
* * *
Thanks to SageCrystl for hosting this chat.
First Editor: SageGrits
Final Editor: SageTinsel
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