Speculators who like to trade frequently could buy stocks listed in this section. Investors should be aware that short-term trading involves a much greater risk, and preferably no more than 10 percent of one’s portfolio should be invested in these stocks. Many of the stocks in the technology sector should be bought when they reach low levels. The stocks listed in this section may be bought by speculators and held as little as eight weeks or as long as one year. This will depend on the future outlook for the company and the price trend of the stock. Speculators could achieve short-term gains of up to 100 percent or higher on some of these stocks.

This section will be eliminated next month. Do to this lengthy bear market the stocks that we featured in this section could not be traded. As the short-term outlook remains negative speculators will have to wait until the earnings outlook improves for these companies, then these stocks may start to ascend and eventually test their resistance levels.


EMC Corporation (NYSE symbol: EMC) is the major supplier of enterprise storage devices, software, and services. The company’s top of the line Symmetrix® system can hold 19 terabytes of data on 384 individual drives.

EMC Corporation acquired Data General in October 1999, and that added a selection of mid-priced storage devices. Although EMC Corporation’s hardware and software is the most expensive, 98 percent of customers are willing to recommend it to their colleagues and business associates.

As the Internet continues to grow and hundreds of millions of people go online during the next decade, we project that the need for storage devices could continue to grow in double-digits. In our opinion, EMC Corporation’s annual revenues could grow ten-fold, and reach $60 billion in ten years. During the past decade, this was the top performing stock on NYSE. The company consistently splits its stock, and the most recent stock split was 2-for-1 on June 5, 2000. After the split, the stock continued to ascend and closed at $103.18 per share on September 20, 2000.

During the carnage in the technology sector this stock proceeded to fall and closed at $39.76 per share on February 28, 2001. Due to the tremendous selling pressure, this stock continued to fall and closed at $11.16 per share on September 21, 2001.

After closing at a high of $17.95 on December 5, 2001, this stock proceeded to fall. As the money flow fell, this equity proceeded to reach new lows and on June 21, 2002, this stock closed at $6.28 per share. Afterwards this stock reversed its downtrend and closed at $9.10 per share on July 15, 2002.

On August 16, 2002, this equity closed at $7.19 per share and we stated, “… at such a level [EMC stock] is fully valued.” Due to the strong money flow EMC closed at $8.50 per share on August 22, 2002, and then proceeded in a downtrend. On September 20, 2002, EMC closed at $5.80 per share.

On September 20, 2002, we stated “If the money flow continues to fall, in a worst case scenario this stock could test its support level of $2.95 by the end of December 2002. Speculators may want to average down and buy more shares at such a level.”

On Friday, October 4, 2002, the company announced that it will cut 1,350 jobs and furthermore added that it does not expect to return to profitability in the second half of this year. The stock fell $1.18 on that day and closed at $3.83 per share. On October 18, 2002, this equity closed at $4.41 per share.

We have lowered our buy target level for this stock to $2.55 per share. If this stock were to reach such level speculators may want to buy it and hold it at least one year. Do not commit more than five percent of your cash to this stock.

EMC has the largest market share for storage equipment. As the sales rebound and earnings improve, this stock may test its resistance level, although it may take a while longer to reach it. This stock may reach our sell target level of $22.12 in 2005, and speculators should then sell it immediately to lock in their gain.


Siebel Systems, Inc. (NASDAQ symbol: SEBL) is a major supplier of management software for large corporations.

After reaching a high of $119.32 on November 7, 2000, this stock proceeded to fall. By December 14, 2000, this stock was down to $79.81 per share.

On April 3, 2001, this stock closed at a low of $23.06 per share, then reversed its downtrend and closed at $54.97 on May 21, 2001. In the August 2001 Buy & Sell we stated: “The next support level is $30 and if this stock were to break through this level, it could retest its April support level of $23.06.”

This stock broke through this level on August 23, 2001, and closed at $21.90 per share. Due to the September 11 tragedy, this stock continued to fall and closed at $12.99 on September 27, 2001.

Due to the very strong money flow, this stock proceeded to ascend and closed at a high of $37.20 per share on January 25, 2002, then proceeded to fall.

On February 28, 2002, this stock closed at a low of $27.76 per share, then proceeded to test its resistance level and closed at $36.64 on March 11, 2002. Afterwards this equity proceeded to fall and on June 3, 2002, this stock tested its support level and closed at $17.62 per share.

This stock fell faster than we projected and broke through our revised buy target level on July 9, 2002, closing at $12.49 per share, down $0.70 for the day. On August 13, 2002, this stock closed at a low level of $7.59 per share.

On September 20, 2002, SEBL closed at $7.01 per share and we stated, “If money flow were to fall $700 million during the next seven weeks this equity may reach a low level of approximately $4.45 per share, perhaps by December 2002. At such a level this stock would be a speculative strong buy.”

This stock closed at $6.20 per share on October 18, 2002, and has not reached its bottom yet. On October 18, 2002, we lowered our buy target level for SEBL to $2.45 per share. This equity could reach such level by March 2003. If this stock were to reach such a low level, speculators may want to buy it.

As the earnings outlook improves SEBL may test its resistance level of $17.12 in 2004. As soon as this stock reaches such a level speculators should sell it immediately to lock in their gain.


PeopleSoft, Inc. (NASDAQ symbol: PSFT) designs and distributes enterprise resource planning software for large and medium size companies. The latest software can even manage payroll, benefits administration, pension administration, and scheduling.

In November 2001, we stated: “This equity may continue its upward trend but it could find a very strong resistance at the $40 level.” On December 6, 2001, this stock closed at $41.00 per share and then proceeded to pull back.

On February 21, 2002, this stock closed at a low of $27.89 per share. Afterwards, as money flow rose $1.8 billion this equity proceeded to test its resistance level and closed at $38.00 per share on March 11, 2002.

Between April 1, 2002, and April 3, 2002, money flow fell $2.1 billion and PSFT fell from $37.37 to $24.76 per share as of April 3, 2002. This equity remained in a slow downtrend and on May 29, 2002, closed at $19.39 per share. As money flow continued to fall, this equity closed at $18.20 per share on June 14, 2002.

In May 2002, we stated that this stock could test its support level of $17.67. On June 21, 2002, PSFT broke through this support level and closed at $16.92 per share, down $1.08 for the day. As the money flow continued to fall, this equity closed at a low level of $14.34 on July 1, 2002. Afterwards this stock proceeded to test its resistance level and closed at $21.30 per share on August 22, 2002.

As the money flow fell $1.6 billion during the next five weeks, this stock tested its support level and closed at $12.07 per share on October 7, 2002. Then as the money flow rose $740 million during the next two weeks this equity proceeded to ascend and closed at $17.14 per share on October 18, 2002.

This stock could continue its upward trend and reach approximately $20.25 per share during the next two weeks. If this stock does not break through its resistance level of $21.30 and the money flow falls $1.6 billion during the next eight weeks, this equity could revisit its support level of $12.07.

If this stock were to break below $12.07 support level and the money flow continues to fall, in a worst case scenario this equity could reach a low of $2.28 by April 2003. At such a level we would rate this stock a speculative long-term buy. Speculators may want to hold this stock at least four years and then sell it as soon as it reaches approximately $30.25 per share.


Citrix Systems, Inc. (NASDAQ symbol: CTXS) is a worldwide leader in the application serving software that allows its customers to run any application on any device over any connection, wired or wireless, or the Web. This company operates in 12 countries and has over 100,000 customers and over 24 million users worldwide. That includes 90 percent of Fortune 500® companies.

In the year 2000, Citrix Systems, Inc. entered into Application Service Provider partnership agreements with IBM and British Telecom. Furthermore, the company announced Web Enterprise Information Portal licensing agreements with Yahoo! and My SAP.com ™.

This stock was a great performer in the year 2000, when it reached a high of $107.40 per share. Then the stock proceeded in a downtrend. On March 14, 2001, this stock fell to $17.31 per share. As the market proceeded to rally, this stock reversed its downtrend and on May 31, 2001, this equity closed at $23.90 per share.

On January 8, 2002, this stock closed at $22.85 per share and at this level was fully valued. Then, on April 24, 2002, this stock broke through its support level of $13.50 and closed at $12.60 per share, down $1.56 for the day.

On July 9, 2002, the stock fell and closed at a low level of $5.00 per share after the company lowered its earnings estimates for the second quarter. This stock closed at $7.15 per share on October 18, 2002 and at this level is fully valued. Due to the negative short-term outlook for this sector CTXS could test its support level of $2.27 by March 2003, and speculators may want to average down and buy more shares at such a level.

If the earnings and the money flow were to improve, this equity could reach approximately $12.25 per share in the second half of 2004.


Computer Associates International, Inc. (NYSE symbol: CA) designs business application software and systems management software that allows computers to run efficiently. In addition, the company provides software that allows corporations to manage Web infrastructure. This company is the third largest; falling after Microsoft Corporation and Oracle Corporation.

After reaching a high of $79.44 in January 2000, the stock proceeded to descend and closed at $24.78 per share on July 31, 2000. Due to the continued bear market, this stock closed at a low level of $22.70 per share on September 21, 2001.

As the money flow into this stock improved, this equity closed at $36.70 per share on January 8, 2002. At that time we stated “This stock is fully valued at this level.”

During January 2002, money flow fell one billion dollars and this stock closed at a low level of $27.69 on February 7, 2002, down $8.08 for the day. As institutional investors proceeded to sell this stock, money flow continued to fall at an extremely fast pace.

This stock broke through its support level of $15.99 on July 1, 2002, and closed at $15.27 per share. As the money flow continued to fall, this stock proceeded to break through its support levels and on July 25, 2002, closed at $7.61 per share.

On August 16, 2002, this stock closed at $10.33 per share and we stated, “…at such a level [CA stock] is fully valued.” Due to the strong money flow, this equity continued its upward trend and closed at $12.61 per share on August 22, 2002.

As the money flow proceeded to fall, this stock closed at $9.03 per share on October 7, 2002. In September 2002, we stated, “This equity could test its support level of $7.61 in October 2002, and if it were to break through this level it could fall to $4.75 per share. At such a level speculators may want to average down and buy more shares.”

On October 18, 2002, this stock closed at $12.40 per share and we still maintain our buy target level of $4.75 per share. If the money flow were to fall $1.6 billion during the next twelve weeks then this stock could reach our buy target level of $4.75 per share.

The risk of owning CA is above average, therefore it should only be bought by speculators and it should not account for more than five percent of one’s portfolio.

We have revised our sell target level for this stock downwards, from $37.50 to $22.50 per share. Depending on the money flow and other key indicators this equity could reach such a level in the first half of 2005 at which speculators should sell it immediately. On the other hand, patient investors may want to hold this stock at least five years and if it were to reach our target level of $65 per share by 2008, sell it immediately.