Barry Hyman Pan Quotations

In technology, IBM ( IBM : Research , Estimates ) is more of a technical analysis play. The stock has broken out, or getting very close to breaking out, of a trading range. And I think the market's still going to give a premium to quality companies in technology. IBM being listed doesn't get that Nasdaq appeal, however. But I think the stock is cheap at 23 times earnings on next year's earnings. And their big server market and the other types of technology they have are doing very well in the service sector.

The markets are really going to be determined by what the Fed has to say. We'll be looking for more definitive talk from the Federal government and (Alan) Greenspan to get some indication of what the Fed is really thinking.

The market has quickly forgotten yesterday's good commentary from Mr. Greenspan and has focused on a quality-of-earnings issue. It's almost like investors are looking for a reason to sell.

The market is going to remain on the defensive and start to look at this developing technology story. To technology, that story is very important. It filters throughout the whole chain of PC sales to companies that produce chips.

It's a consumer company that sells personal care items, ... At 11 times earnings, I think it is too cheap to be ignored. I think it is a $15 stock.

The situation is very tenuous on the equipment side and any slowdown in demand in the equipment side of the equation, when you are priced to perfection, means these companies are still very expensive,

I believe the Asian markets are stabilizing and if you look at the Japanese market, I think the market has put in a bottom in Japan as well and that cannot hurt the U.S. market in the intermediate term.

It's the companies that came through the quarter without any problems that are the ones reacting well and they're not as cyclical as some of the others.

When you have a major company like GE boosting its dividend and announcing a big buyback, that's very positive for corporate America,

This is a market that is assuming everything is going to get better. There's been too much commentary by the chairmen of these companies that these problems are inventory but everything is based on a turn of the economy ? that's what the Fed is there for.

I think we're looking at nothing but good news on the earnings front. It will be more critical to see what guidance these companies give us toward the next six months to one year. Today's action is a little too premature to say how the markets will react to earnings.

It is quite astounding. One week revenue-based companies are forbidden (psychologically) from investors' minds and one week later, as interest rate (fears) return, technology (stock) is the place to be because they are less affected.

Traders are dominating this market when investors are just waiting for these pre-releases to really reveal what these companies look like. We're just waiting for the first signs of a turn and there's little optimism as we go through this pre-release season and no one is focusing on the second-half of the year (2001).

The idea is that interest rates will affect the old-economy companies more, because they are more interest rate sensitive. You will probably have less of an effect on technology stocks, and there is a lot of bargain-hunting going on. I think investors are a little more comfortable coming into these blue chips down 30 percent.

What will frame investor decision-making in August is going to be totally Fed-driven. We've gotten the anecdotal comments from Mr. Greenspan that we can achieve a slower growth landing but we now have to see that anecdotal evidence turn into fact.

We're not at the beginning of a decline. We don't believe you're about to enter another horrendous down phase in the market measured by the Nasdaq. We think there are some tough times ahead over the next one to three months. But if you take a longer view of that, many of these companies in the Nasdaq big cap are starting to come down to levels that look fairly attractive on a growth basis.

We're seeing pre-releases starting in 'old economy' stocks - companies that are not leading-edge tech companies but are more affected by this dramatic rise in energy prices.

Global markets are the best investment at this point. The growth story developing globally is strong, the companies have better valuations, and the trend is doing well.

There was nothing Greenspan said that was harsh and sometimes no news is good news,

We've accepted the fact that the earnings growth for the quarter is around 20, 21 percent year-over-year for the S&P. But there's been this behind the scenes look or under the surface look at revenue. And we haven't got the best of forecasts for the second half of the year in many companies going forward. And if you don't have that pristine look -- where you come in this earnings season totally clean -- you've gotten battered. And I can't even name more than a handful of stocks that have come through.

I think people are just abandoning technology, especially when you can't count on a 'Nokia' that hasn't missed (expectations) in years. The point is that there's nothing wrong with these companies - what's wrong is that analysts were not looking at the second half of the year. What's happening now is estimates are going to come down to match the reality of the economic situation.

(Microsoft) has been trading like the company (had already) lost the antitrust case against the government. The stock has been extremely weak compared to its sector and especially since the company has already reported earnings.

I think it's the pattern from pre-announcements to earnings ? these are two companies (Motorola, Yahoo!) that have beaten lowered expectations, beating pre-announcements. When you expand that to the Microsoft story, it makes it even more powerful today.

I think, ... that Pfizer is going to benefit from their merger with Warner-Lambert. I think that makes a very good deal. But most pharmaceutical companies do eventually strike deals with biotech companies in terms of marketing their product. And the genomic companies don't have a lot of cash. They have a lot of high valuations, but they don't have a lot of dollars to spend. So, they usually look toward the pharmaceutical sector to help them out, which usually helps both sectors.

Don't expect 86 percent this year on the tech stocks, ... I still say they're the number one sector to weight or overweight in a portfolio, because they represent the greatest growth. Your companies at 8-to-10 percent are languishing. Companies with earnings, who cares. It's a 100 times earnings. It's 30 percent growth that matters in this market.

For some reason, today we're painting the whole picture with a broad brush and a few profit warnings are really damaging that landscape for the companies that are good (performers).

I think next week it will be important to see two things: solid numbers out of growth companies and seeing still a steady stream of economic numbers showing the required slowing of the economy with no inflation.

You have to be careful. There are not many sectors that are doing well out there. This is a slowing economy. People are looking for security of earnings. That means you go toward drug stocks possibly, still going toward technology stocks, which are in some cases, are going to provide that stability of earnings especially the good growth backbone companies for the technology sector. Avoid cyclical stocks, avoid retail stocks. Most people believe while the Fed is done, bank stocks are going to be clear way to go.

Higher interest rates are an impediment to companies where cost is important and that's Old Economy stocks, ... What we are seeing is a defensive move into technology stocks.