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Everyone should think about having core holding that they pretty much ignore. These are the gorilla stocks with a “story” and long term trends that hold. The time to buy them is in times of decline or pullbacks. Every year the major indexes can be expect to pull back toward their 200 day. That’s the time to move such stocks into a portfolio. This portfolio isn’t about balance. I don’t want balance. To me, balance can mean mediocrity. Look at sectors and their popularity or weakness. That is volatility and that is “balance”. I’m looking for stocks that ignore that sector related volatility more than their brethren. When you are looking for core holding review a multi-year weekly chart. If you have a Relative Strength indicator on your charting tool, it is time to put that on the chart. Also, look at Money Stream. The only classic charting you need is channel tracking. We want a stock that seldom violates a strong, upward trending channel. When there is sector weakness we want this stock to decline less than it fellows. What if things head down? See the FAQ |
One thing seems certain, the internet stocks are going to be active leaders for the future. While many things will impact them to the up and down side, clear leadership in the hosting area seems to be owned by this company. This is the hosting site for the major portals and has clear leadership. It has great management. It has a growth plan in place that should keep it nicely ahead of the pack.
As I write there is a lot of talk about the failures that we will see in the Internet sector. This is one true net stock that should stay strong over time. It has earnings and has been smart in almost everything the take on. This will probably be one of the more volatile stocks on this list and is not for the weak. Yet, it will be one of the stocks to own. It is one of those “core” stocks that should be traded more than most.
Broadband is tomorrow’s technology. BRCM is broadband. Their customers currently shipping broadband communications equipment incorporating its products include 3Com, Cabletron, Cisco Systems, General Instrument, Hewlett Packard, Motorola, Nortel Networks, Samsung and Scientific-Atlanta.
The alternative is NT—also on the list. CSCO is the backbone of choice to date. The key term is build-out. There will be a lot of investing in the backbone and that translates to business for Cisco.
A number of companies have tried to take on the Pentium juggernaut. And Intel always wins. When I was running CP/M on an 8080 I attended a CACHE (computer club—one of the first) and chatted with an IBM guy that had attended a briefing by INTC. He said they would revolutionize the world and to put every penny into Intel. I wasn’t into stocks at the time. DARN!
More net build. This one will prosper from that. Jim Cramer calls it “Just Don’t Sell Me” and he has a point.
Can’t all be nets, right? Well, the phone will be a net appliance and this company is leading the race.
If you are not buying CSCO, you can go with this one. It could be the CSCO killer. Not the history of CSCO but lots of movement toward the State-of-the-Art in the area CSCO “owns”.
Has become the Internet server of choice. If the net doesn’t go away, neither will Sun. They may have the best president in the world. Here is a company that does everything in the proper and ethical manner. And they blast earnings and sales in doing it that way.
I admit that I’ve never been an Elison fan. And, they occasionally disappoint. But, they too have become the Internet choice in data management. It is what the big sites use when you are accessing their data.
If your grandpa bought some and kept it forever,
he’s a millionaire. This has been THE stock of the last century.
It is a company that has empowered its people and has probably
had more CEO’s developed for other companies than any other.
They are leaders in every sector where they compete.
These stocks are all about the Internet and excellence. The Internet
is the long-term wager you want to make. I am not saying you have
to own all these stocks. Pick the 3 or 4 you like the best and
ride em…
I’d really have liked to add some Biotechs here! But,
that is still a crapshoot. The choice is probably a fund. Although,
I really like CEGE. They have cash and seem to be ready to move
a couple of good plays to phase III. If just one hits… DUSA
is a stock that has a product for skin cancer that will be profitable
and they have the marketing partner. But that more a short term
play; I don’t see them having a whole lot of follow through
showing.
Don’t mistake stock like DUSA and CEGE for core holdings.
Core holding are time proven stocks.