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Stock picks by the pros
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October 13, 1999: 1:09 p.m. ET
Intel and Motorola still look good, analysts say; Sony, Inktomi get nod
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NEW YORK (CNNfn) - A chip maker, a wireless product manufacturer, and an electronics ADR, among others, got the thumbs up from money managers and analysts Wednesday. Here are some of the stocks recent guests on CNNfn are buying and why:
Despite disappointing 3Q earnings results for Intel and Motorola, at least two analysts find that the stocks are keepers.
Mona Eraiba, chip analyst at Gruntal & Co., had this to say on Intel (INTC): "It's a buying opportunity. We think it's short term in nature. Once we start moving into the fourth quarter with strong demand, better manufacturing efficiency, (you'll) see a rebound in the stock."
The Iridium quandary aside, says David Toung, communication equipment analyst at Argus Research, Motorola (MOT) is still a good growth pick.
"The Iridium exposure is just one aspect of the company. If you take out the businesses that they`ve sold, their sales were actually up 12 percent on the quarter, which is much better than the 7 percent that they reported. Also," continues Toung, "if you look at the businesses they're going into, they`re buying General Instruments (GIC), which makes table set-top boxes. That's a big growth area for them."
"The market isn`t looking at the fact that Motorola has a great market share in cable modems, either," Toung points out. "They are also moving into wireless data, wireless applications of Internet browsing. So, there are some good things in the pipeline for Motorola."
One stock that may benefit from today's move by the Bank of Japan, says David Linehan, portfolio manager at US Trust, is Sony (SNE) ADRs.
"I have a heavy weighting in Sony", Linehan admits, "I like (the stock) very much. I like their whole strategy towards becoming more of a software supplier, moving ahead in virtually every area of digital (technology)."
"We should find a temporary bottom here," says Greg Kuhn, analyst at Kuhn Asset Management, about the market's reaction to a slew of earnings surprises. "I've been watching the news ever since the market sold off yesterday. Everything is negative. Everything!"
But there are some stocks, says Kuhn, that investors should hold on to, bumpy ride or not. The first is RealNetworks (RNWK), "a company that`s involved in streaming video, which will be big going into the new decade. This is a stock that could be on its way to a thousand percent move over a 36 month period. It's bucking the trend of the market and showing very good relative strength. So the stock`s actually telling you something here."
Internet software designer Inktomi (INKT), says Kuhn, is another keeper, as it's a top provider of Internet business solutions "which more and more businesses (need) to operate on the Internet. Inktomi is involved in helping them to figure out how to manage their Internet business."
Kuhn also likes network and connectivity products manufacturer Adaptec (ADPT), saying "they provide bandwidth solutions. The speed of Internet access communications is going to be another 'big thing', something the market`s been focused on. Over the last two years, the company was on the down swing in terms of earnings. Last year, though, earnings picked up strongly, and next year's earnings are expected to be up 100 percent." 
The views presented here are solely those of the analysts quoted. They do not represent the opinions of CNNfn on whether to buy or sell shares of a particular stock.
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