Five Stocks With Potential Follow-Through Momentum

May 8, 2002
Daniel Beighley

The markets rocketed off the
open and leveled out midday before pushing higher into the close. All three
indexes posted impressive gains. Topping the advancers’ list were Internet,
networking, computer, software, semiconductors, and broker dealers, with only
the gold and silver and REITs in the red.

U.S. Treasury Bonds were
down 115 at 101 ’04.

Better than expected earnings from Cisco
(
CSCO |
Quote |
Chart |
News |
PowerRating)
fueled bulls’ cause, as the widely considered tech bellwether gained over 24%.
There were no economic releases today.

Market breadth was positive,
with NYSE advancing issues over declining issues by a ratio of 1.68, and up–volume
over down–volume
by a 4.35 ratio. Nasdaq advancing issues over declining issues came in at 2.25,
and up–volume
beat down–volume
by a 5.82 ratio. The
VIX
was down 1.51 at 23.06. The TRIN
was down 0.84 at 0.38.

Above average volume
moved the Dow above its 200-day MA, as the S&P 500 and Nasdaq took back
four days of losses. The Semiconductor Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating), up 11.10% at
522.35, also erased four days while falling short of its 200-day moving average.

Internet equipment maker Cisco Systems (CSCO),
up 24.38% at 16.27, posted third quarter
earnings of 11 cents a share, beating expectations of 9 cents a share.

Communications equipment maker WorldCom (WCOM),
down 2.71% at 2.15, is reported by the New York Times to be taking a
$2.65 billion loan from banks to change its financing terms.

Advertising company TMP Worldwide (TMPW),
up 16.34% at 27.12, cut their 2002 and 2003 earnings forecasts to a level that
is believed by Bank of America Securities to still be
too high.

Conglomerate General Electric
(
GE |
Quote |
Chart |
News |
PowerRating), up 7.17% at 32.85, was up after
its CEO said the company is on track to deliver its projected 2002 earnings of
$1.65 to $1.67 a share.

Drug store company CVS Corp. (CVS),
up 5.68% at 35.53, announced that first quarter
profits are 20.7%
less than previously reported due to a change in accounting method. Income for
the first quarter
stands at 43 cents a share vs. 54 cents a share a year earlier.

Business services company
KPMG Consulting (KCIN),
up 14.75% at 17.27, has made an offer to acquire Andersen Consulting’s U.S. and
some overseas components for $284 million. Andersen has been selling parts
of the company to raise cash.

Chip maker PMC-Sierra (PMCS),
up 23.17% at 16.00, and Applied Micro Circuits (AMCC),
up 26.42% at 7.08, have been upgraded to "buy" from "hold"
with the belief that the service provider and enterprise networking markets are
stabilizing.

Five Stocks With Potential Follow-Through Momentum

BUY THE FEAR, SELL THE GREED

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