Well, we certainly should thank the viewer for reminding us of
Microsoft. You're right, Paul. Right here on the NIGHTLY BUSINESS
REPORT, also in "Marketimer" we initially recommended purchase of
Microsoft in 1990 at a split adjusted $2 a share. And in the newsletter
we called it the technology stock for the 90's. Now we're up over
4,500 percent on that recommendation.
KANGAS: So, are you taking money off the table now, Bob?
BRINKER: Well, we're holding the stock.
We did maintain, to answer the viewer, we did maintain "buy" points for
several years. But now we're at 60 times next year's earnings on
Microsoft, so we're going to stay with a "hold" for now. That's a rich
[7/23/99 MSFT=45; 12/20/00 MSFT=20.75!!!
As of 5/16/05 MSFT remains a HOLD in Bob Brinker's Marketimer.]
The next question from Jackson Mississippi, Eric Ritter , who watches
us on WMPN asks, "why don't you recommend more individual stocks in
your 'Marketimer' newsletter?'"
Really the "Marketimer" newsletter's focus is twofold, to be on the
right side of the major trends in the market; that's key obviously. And
also to pick mutual funds that you can invest in over time to build
your wealth. And that's why we publish the recommended list and the
one of your "buy" recommendations on your last visit with us was
Stanford Telecom (STII) at 22. It's now up around 27. Buy more, sell it
or hold it?
I would take profits of Stanford Telecom. They are the target of a
takeover offer from Newbridge Networks (NN), the Canadian company. I
think that this tremendous run-up in the stock in the last few months
is a profit-taking opportunity in Stanford Telecom.
just have a minute left. You also said at that time to by Ultratech
Stepper (UTEK) at 29. Now, it's down to about 15. What do you do with
Ultratech's been through a difficult period. They have strong
financials, close to $10 in tangible book value, mostly in cash. A new
product effort under way, and they have a new technology, bump
processing for advanced semiconductor manufacture. This is an important
technology going forward for high performance low cost chips. So we have a "hold" on that stock.
[UTEK Prices: 7/23/99 UTEK=14.875, 1/11/00 UTEK=$15.19 ]
it's come to my attention that employees at Ultratech have the option
to invest their 401 (k) funds with a management firm in which you are a
KANGAS: So, my question is does your firm recommend individual stocks?
BRINKER: Absolutely not. The BJ Group exclusively invests in no-load mutual funds.
KANGAS: All right. So, you see no conflict there?
BRINKER: Absolutely not.
KANGAS: All right, 15 seconds. Any new recommendations Robert?
BRINKER: I would say stay very, very close to the stock market indicators here. Don't become complacent. Don't listen to this business of the market skyrocketing.
[EC: Lets see what "the market" did in the next year]
[EC: It looks like the S&P500 went up about 10% and the NASDAQ went up 90% in the year following that pronouncement by Brinker.]
KANGAS: Bob, thanks very much for being with us.
BRINKER: Thanks, Paul.
KANGAS: My guest Bob Brinker of "Bob Brinker's Marketimer" letter.