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Bruce Mushial of
July 7, 2000

Opening Remarks

Sage Host: Please welcome Bruce Mushial, senior technical analyst with For more information visit

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

* * *

Thanks to SageCrystl for hosting this chat.

First Editor: SageGrits
Final Editor: SageTinsel

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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