What company shows the most future promise

RedShirt

Golden Member
Aug 9, 2000
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Hey everybody, with the recent stock market struggle I figured it would be the best time to buy a stock in a company that is not doing so well.

So what do you guys think? Do you think there is a company out there that is struggling now that shows good promise?

A couple I can think of is Rambus, with the recent stock price drop, but their RAM is used in Pentium 4 processors.

A high risk company would be buy.com. They are at 20 cents a share right now and used to be at 14 bucks a share.

Any ideas or tips? Thanks.
 

ChicagoMaroon

Senior member
Dec 10, 1999
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Juniper Networks (JNPR), Redback Networks (RBAK), Extreme Networks (EXTR), Sycamore Networks (SCMR), Ciena (CIEN), Corvis (CORV), Sonus Networks (SONS)...

In short any of the super well managed companies that are beating Cisco in their respective markets. Once the nuclear winter in telecom spending ends, you have to own these companies, they are the future.
 

Joemonkey

Diamond Member
Mar 3, 2001
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if i had the money, i'd invest it in Bartons. they are a liquor company, and i work in a liquor warehouse type store. about 50% of ALL the hard liquor is produced by the barton brand, and people buy it at cases at a time. however, i have no clue if they are even in the stock market, seeing as how i have no money to invest... and think about it, are people ever going to STOP buying alcohol?
 

Midnight Rambler

Diamond Member
Oct 9, 1999
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<< Juniper Networks (JNPR), Redback Networks (RBAK), Extreme Networks (EXTR), Sycamore Networks (SCMR), Ciena (CIEN), Corvis (CORV), Sonus Networks (SONS)...

In short any of the super well managed companies that are beating Cisco in their respective markets. Once the nuclear winter in telecom spending ends, you have to own these companies, they are the future.
>>

The question is, will these smaller companies weather that nuclear storm. Only the big companies have the cash on hand to do so. I still like CSCO's chances overall a lot better.


INTC (AMD is quickly blowing its opportunities - notebook 6 mos. late, server chip late &amp; too limited, no PDA processor entry ...)

CSCO
SUNW
ORCL
ADBE
JDSU
FLEX
AMAT
TER
Q (Qwest)
GE
AMGN (only on price weakness, it's not currently very cheap, but their product lineup is mega ..)

I could easily name 50 more stocks, the market carnage has been pretty complete.

Two rules to follow:

1.) Dollar cost average on single stocks.
2.) Look at index funds or Unit Trust funds if you don't have the capabilities to assemble your own portfolio of individual stocks which are diversified. NASDAQ &quot;Spiders&quot; wouldn't be a bad place to start, or Nike First Trust has some well-laid-out unit trust funds (nice bonus here is no commissions, very low fund fee - none if you hold them long enough).
 

ChicagoMaroon

Senior member
Dec 10, 1999
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The question is, will these smaller companies weather that nuclear storm. Only the big companies have the cash on hand to do so. I still like CSCO's chances overall a lot better.

All those companies have massive cash on hand (raised from IPOs and secondaries) and close to ZERO debt. For example, SCMR has close to $1 billion in CASH and no debt. These are serious companies taking share away from CSCO/NT/LU. They'll be around for a while. Telecom spending is slowing, but we're also seeing a shift away from legacy equipment toward next generation stuff made by the aforementioned companies.

<EDIT> I've waited a long time own these next-gen networkers. I love the companies, but their stocks have always been a little rich until recently. Slowly but surely these days, I'm grabbing all these stocks at good prices. :) </EDIT>
 

jamarno

Golden Member
Jul 4, 2000
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If you want to burn your money, consider Western Digital, which has seen sales shrink for years and hasn't made a profit in 3 years. They'll probably repeat this performance for a 4th year.

I like Microchip, MCHP, because the company is well run (modern factories, dumpy offices), has good financials, including no debt, and is the leader in the area of single-chip computers. They built a new factory last year that doubles their manufacturing capacity.

I've also noticed that Intel's price/earnings ratio has again dipped below that of the overall stock market's, and considering that its long term growth is probably higher than the market's, this tells me it's a value stock. Intel also has some of the lowest costs in the chip business.

I don't know if Southwest Airlines (LOVE) is still worth buying, but it's worth holding because it remains the best US airline. And if Northwest or America West goes under, this could take some price pressure off the industry, and Southwest should benefit the most.

I believe that analyists' pessimistic take on Home Depot is wrong. They may be facing competition from Lowe's, but Home Depot is still very well run and is already the third biggest retailer in the US, having overtaken Kmart last year.

 

LuciferHaze

Banned
Mar 17, 2001
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Intel: They are going to get their act together and soon.
Nortel Networks: Stock is at rock-bottom. Nowhere to go but up.
Corel: The days of mismanagement are over. CEO resigns.
 

JohnnyTT

Senior member
Nov 28, 1999
293
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Two of the strongest companies in the NASD.......


NVDA....Nvidia
..................What can I say, I was a 3Dfx fan, but they are a great company.
KLAC....KLA-Tencor
..................They are Semi-Equipment company with excellent sustanable growth.

:cool:
 

BFG10K

Lifer
Aug 14, 2000
22,709
2,998
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While certainly not struggling, PowerVR are looking very good with their latest Kyro2 video card.
 

tigerbait

Diamond Member
Jan 8, 2001
5,155
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about the Kyro II card, would ST Microelectronics (STM) be a good investment? They seem to have good revenue, and this new product, albeit only a fraction of what they manufacture, seems to be able to make a huge impact.
 

RedShirt

Golden Member
Aug 9, 2000
1,793
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Hmm, thanks for the advice... Maybe Intel would be a wise investment... Or Rambus since they are really low right now and are in bed with Intel...