The Nasdaq has largely been immune to the pullback in the Dow recently. Some of this response is overdue. |
The PC stocks should do well in the second half of this year. |
The pipeline of new deals is very strong right now. Fundamentally, their story is still very much intact. They are the dominant provide of database software to corporate America, and they are well positioned as an Internet infrastructure provider. |
The software license revenue is widely viewed as a healthy barometer of their business. I think most of us were looking for growth in the 12- to 15-percent range, and we got 9 percent. |
They really need to stimulate that top-line growth and I think this is the first step toward doing that. |
This is purely a valuation call in both cases, however. We love both of the companies. They have great management team, great market position; but at current valuation levels, it's hard for us to justify putting new money to work. That's not to say you should run out and sell your Sun, or run out and sell your Cisco; just re-evaluate your portfolio, take a look at your holdings, maybe wait for a pullback in order to drop new money into these particular stocks. |
We may have hit bottom in Asia but it may not get better anytime soon. |