Preserving Your Portfolio

valign=”middle”>$43.80 $66.00 Kellogg (NYSE: K) 38.00 63.00 Fannie Mae Corp. (NYSE: FNM) 76.46 107.00

*AS OF JAN. 28, 2004

 

STEPHEN COLEMAN DAEDALUS CAPITAL L.L.C.
STOCKS ARE ESSENTIAL. TIME IS YOUR BEST ALLY.

THE PICKS
Nortel: I like Nortel because the core of its business—about 45% right now—is the wireless area, infrastructure, and equipment. It’s mobile phones today, but, ultimately, the entire Internet is a wireless phenomenon: high speed, broadband, etc. I see Nortel as a leader there.

Charter Communications: Because it was expected to have been abandoned by Paul Allen, one of the wealthiest men in the world, the stock price plummeted. We think it should be right between $13 and $15 a share. It’s a cable company with a thriving broadband business.

Wireless Facilities: It was $40. In 60 days, it fell to $3.50. Metricom, one of its customers, went bankrupt and wrote off $13.6 million. Wireless Facilities is in the business of designing, constructing, and managing wireless infrastructure. It built a lot of Verizon’s backbone on the wireless side. Within six months of identifying a problem, they were profitable again. I see Wireless Facilities, three to five years out, at 40 bucks.

*AS OF JAN. 28, 2004