Smart Market Moves

You don't need to gamble in today's market. Our panel of experts give you the best bets for 1999.

even more money with the company since it is in the process of rolling out Windows 2000, which she expects to sell ahead of the company’s expectations.
Airtouch Communications (NYSE: ATI): Airtouch, the world’s largest wireless company, is one of her prime telecommunications plays. The company’s pending merger with Vodafone Group, the UK’s largest mobile telecommunications firm, promises to strengthen its transatlantic reach. Airtouch’s potential for wireless penetration in Europe is 50%, and she says, its prospects for further expansion in the U.S. are not too shabby either.

EMC Corp. (NYSE: EMC): What Microsoft is to software and Intel is to semiconductors that’s what EMC is to enterprise storage. The company designs, manufactures and supports a wide range of storage-related hardware, software and service products for mainframes and computer networks. Goodwin predicts that EMC will grow 30% plus this year as corporations use its products to prepare for the Y2K bug.

Steven Singleton Robert Van Securities Singleton’s 1999 equity picks:
Company 52-week High/Low* P/E
Lucent $117.19/44.25 58.6
Intel 140.94/65.94 39.7
MCI 79.88/34.97 106.3
*As of 2/1/99
Source: Zacks Investment Research

Lucent Technologies (NYSE: LU): The AT&T spin-off produces, among other products, the equipment that helps users log on to the Internet. Singleton believes that the concern will continue to grow through its proposed acquisition of Ascend Communications, a leading maker of networking equipment, to become an even greater competitive threat to Cisco Systems, the market leader. He believes that such developments will push the stock to $140 a share.
Intel Corp. (Nasdaq: INTC): The leader of the semiconductior industry will continue to drive its market. Singleton says that the company “has an extremely strong product cycle from the low end to the high end.” As Intel increases its pipeline, it will spur the creation of new technology and, in turn, greater demand for its array of products. As a result, Singleton expects Intel’s stock to rise to $160 over the next year.

MCI-WorldCom (Nasdaq: WCOM): MCI-WorldCom gives investors another way to play the Internet. Roughly 45% of all Internet traffic travels across the company’s lines. This year, it plans to expand its product offerings, including DSL, a new alternative line to speed up transmission. Singleton says that this addition will enhance an already strong product mix.

Deborah Frazier, Merrill Lynch
Frazier’s 1999 equity picks:

Company 52-week High/Low* P/E
America Online $172.75/23.73 358.7
Cisco 111.56/40.81 89.5
Pfizer 128.63/79.75 62.7
*As of 2/1/99
Source: Zacks Investment Research

Tax-free municipal bonds: If you’re in the 28% bracket, she suggests that you buy a 10-year AAA-rated municipal bond. You can expect to gain 80 basis points (almost 1%) over the10-year AAA Treasury. If you are in the 40% bracket, the yield will be 1.3% higher.

On the equity side, Frazier goes with such technology market leaders as America Online (NYSE: AOL); Cisco Systems (Nasdaq: CSCO); as well as the pharmaceutical giant Pfizer (NYSE: PFE). In addition she also suggests that investors look at such funds as Alliance Capital Premiere Growth, which has a portfolio that includes Cisco, Dell, Citicorp and Disney and has produced average annual returns of 24%, as well as the home-grown Merrill Lynch Fundamental Growth Fund, which has

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