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    • Investment Views  (August 7th 2000)

    Markets in General
    The 3600 support level on the Nasdaq Composite Index held.  We expect some
    further backing and filling until the August Fed meeting is over.  Until the Nasdaq 
    Composite index break through the 3600 level, we expect it to remain in a
    trading range between 3600 and 4000.  The Dow is getting tired.  We expect a
    bit of correction next week.  The levels to watch are still 10200 on the downside
    and 10800 on the upside.

    The European markets have generally followed the US markets' ups and downs
    last  week.  But the upward climb is much more strenguous here than in the
    US.  The volume is still extremely low.  Europe remains in summer doldrums. 
    The tech stocks in Europe are still in correction.  We do not see the stocks
    breaking out of their sidewards movements anytime soon.

    The SMI broke above the 8000 level again and made a new yearly high.
    But the market is becoming very much overbought.  We do not expect
    much upside.  The chances for a correction has become much greater.
     

    Go to Index


    Stocks

    Our favorite stocks remains SAP, Nokia, Ericcson, Cable and Wireless.
     
     

    High of the YearLow of the YearPrice and year of recommend. Performance since recommend.StockLast Week's
    Close    		Daily highDaily lowThis Week's Close
    8080
    		6968

    		SMI7997.808188.20
    		8116.6
    		8119.60
    E 95.5024.80
    		53.5 (2000)+49.53%AT&S87.50
    		 82.40       
    		8080
    SFr. 400024751351(1998)+179.79%Bachem3675384036603780
    Gbp17.56
    		3.13
    		6.50
    		 -2.31%
                 		BaltimoreTech
    		6.11
    		7
                		6.35
                		6.35
      E         420
    		           207
    		260 (2000)+9.62%Biodata272
    		288
    		273285
    Gbp 15.778.284.9(1998)+133.67%C&W11.7011.9711.1911.45
    E 368.90210.10140(1998)+35.36%Cap Gemini202
    		194.80
    		187.60189.50
    SFr.44.2521.510(1998)+200%Ericsson31.7531.503030
    E.205E.3228 (1999)+167.86%   Evotec90.70
    		78.50
    		73
    		75
    E 9770.25
    		37.8(1998)+145.90%LVMH92.35
    		95
    		92
    		92.95
    Sfr.27513360(1999)+191.67%New Ventur179.25177171.50175
    E.64.9037.507.50(1997)+502.67%Nokia46.95
    		45.60
    		44.10
    		45.20
    SFR.1940017600SFr.16900** (2000)-3.25%Roche GS15770167151635016350
    SFr.456.33           218
    		46.66(1997)+544.02%SAP287
    		305
    		298.50300.50
    E 9739.70
    		17.7(1999)+128.25%Sonera42.90
    		41.19
    		37.80
    		40.4
    SFr.850660460(1998)+101.09%Syn-Stratec879
    		927
    		900
    		925
    SFr1050661703(2000)+10.53%Think Tools 899
    		797
    		765
    		777
    E 73.301614.9(1999)+319.46%Zeltia58
    		62.50
    		61
    		62.50
     
    *We decided to calculate the performance since recommendation, because we have recommended the different stocks
    to buy at different times.  Since we're convinced that one should be long term investors, we think the performance
    since recommendation is a better reflection of our goals. **adjusted for Givaudan spinoff. 

    Baltimore announced much better sales than expected.  The growth in business is most in the US. 
    The only     problem is: the company hasn't reached breakeven level.  And nowadays the investors
    refused to get overly     enthusiastic until profits are for real.  We remain positive in our judgement
    of the business prospects of Baltimore.  Buy on weakness!  However we advocate building up
    only small positions on several high tech companies at the same time to spread the risk.

      Go to Index



    Currencies and Bonds

    The dollar recovered along with the US stock markets.  It has remained quite
    strong last week.  We expect the dollar to challenge the Euro again next week.
    Again we expect the Euro support level around .90 to hold.

    Go to Index

    Future Trends

    Investors seem to be cooling towards the idea of the 3rd generation wireless
    telephones.  But it is a technology that is coming to the market within the
    next couple of years.  So why is the stocks of Qualcomm down so much
    and that of Ericsson and Nokia are going nowhere?  The problem seems to
    be the high 3rd generation licence fees that countries in Europe are demanding
    from the telecom companies.  People seem to think that the sky-high
    cost could delay the implementation and that telecom companies
    might be tempted to only build the 3rd generation systems in areas
    where the telephone charges will be able to cover costs.  Therefore
    the capacities build might be much smaller than anticipated.  On the
    other hand people should take into consideration that the telecom
    companies might be very anxious to get their systems going as soon as
    possible, because the licence fees are so high.  They will need the
    income stream generated by the new systems as soon as possible.
    Plus companies like Qualcomm and Ericcson will only stand to
    profit from the building and converting the present telephony system
    to the new standards.  The question will be how much and how soon and not
    if at all. We recommend buying these stocks on weakness.

     
     
    *The stock prices are provided for informational purposes only and  not intended  for trading purposes.  The opinions expressed in these pages are what they are: opinions!