that you mentioned Safeway. Food distribution is going through the same thing, albeit probably not at the rate that is happening in supermarkets.
That being said, this is a name I was wavering on: IFX Corp. (Nasdaq: FUTR). They are really a holding company for Latin American Internet-related businesses. They operate under the Unete name. They own an interest in U.B. Internet, which is one of the leading Internet companies in Latin America.
The Internet service provider market in Latin America provided that business about $167 million in 1998. Now you compare that to where the U.S. is, where we are, in terms of the Internet and the revenues generated from that, and it far exceeds that.
The great thing about IFX is that it’s estimated that that market will reach about $8 billion in the next two to three years. IFX, the way they are going to generate their revenue going forward, is literally right now to offer free Internet, moving right off of many other successful strategies they have in this marketplace.
I like Finova Group (NYSE: FNV) because they focus on a market that a lot of the larger players that you are interested in just kind of sweep to the side. They’re middle market lenders. My background is actually middle market lending, so I know that there is market there, there is money to be made and Finova recognizes this as well. They are focusing on the middle market and I think $500 million or so in sales and revenues type of lenders. Finova Group could be at 333/4 12 months from now.
B.E.: What is your best advice for retail investors?
MANNS: Determining what your time horizon is, is the most important thing a retail investor can do. If your time horizon is the next six months because you want to go ahead and pay for your honeymoon, as opposed to the next 40 years because you’re looking to take the money in retirement, it changes how you look at things.
I think, then, secondarily, figure out your risk profile. Your time horizon may be 40 years and, in that environment, everything should point to you going more towards the Nasdaq. If your risk tolerance is nil, the ulcers you get day by day aren’t going to pay off whether you get the return or not, so determine what your risk tolerance is.
Let’s say someone that has an average risk profile and an average duration or an average time horizon on their portfolio, call it 10 to 20 years or so. It would seem to me that this year, the best thing that someone could end up doing is an asset allocation that would be 60% to 70% equities, 30% bonds. In each case, however, for a retail customer, go with quality versus abject risk or playing the dogs of the Dow or what have you.
Hughes: Well, maybe I’ll just sort of say what I’ve done and use that as a basis. I’ll say that my own personal portfolio has a