MONEY 2003 Call-In, CNNfn.

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Original Source: MONEY 2003

SUSAN LISOVICZ, CNNfn ANCHOR, MONEY 2003: We`re back. We`re back taking your stock questions. I couldn`t quite place that song. Maybe it`s ahead of our - before our time.

GREG CLARKIN, CNNfn ANCHOR, MONEY 2003: It is. It is. Don`t know the title.

LISOVICZ: And I`m waiting for somebody in our ear to tell us but they`re not. "Cool Yule" (ph), because I guess we`re now in the start of the holiday season.

CLARKIN: Very festive.

LISOVICZ: OK. It`s very festive here in the newsroom. Michael Carty, stock market strategist at New Millennium Advisors here to take your calls and anything else on your mind.

CLARKIN: That the number to call is 1-800-304-FNET. That translates to 1- 800-304-3638.

Michael, want to talk a little bit about the markets first? I mean most folks expecting kind of sideways movements for the next few weeks to the end of the year, I guess.

MICHAEL CARTY, STOCK MARKET ANALYST, NEW MILLENNIUM ADVISORS: Because we go to this - first off, we`ve got several things working against us. We`ve got the pre-announcement period because most of these companies are going to report in calendar years, except for the retailers. We`re going to be right into retail, you know, information. And then, of course, there`s - there maybe some tax capital gains selling, you know ...

CLARKIN: Sure.

CARTY: ... and again some tax losses that people have been taking from previous years. So things can get quite dicey but I would say this that the general trend has got to be up given the recent economic numbers. We had the revision for gross domestic product that came in at 8.2, which was much higher than anyone expected. The National Association of Business Economists earlier this week announced that they`re moving their target of GDP growth for 2004 up from 4 percent to 4 1/2 percent and we had jobless claims under 400,000. We got the announcement that there was capital - you know, it was no surprise to me that the information technology was picking up and - or technology stocks did so well. It was announced this week the capital spending in those areas has started to pick up and that`s a very strong sign.

LISOVICZ: You know, Michael, you mentioned the pre-announcement season but the pre-announcements have been actually on the good side. Companies have learned a hard lesson, so have investors for that matter, that they`ve been more cautious, whereas they were, you know, so euphoric in previous years they have been cautious about their forecasts.

CARTY: Of course and then, of course, with the big problem with corporate governance and people were actually jacking up their earnings, making - placing them in unrealistic levels, of course, that was a problem and then when Sarbanes/Oxley, you`ve got all sorts other problems and you had the - then you went into the fair disclosure, Reg FD, all of this meant that people had to announce early if there was going to be really bad news but there`s less and less of that. There was less bad news in September. There`ll probably be less bad news here. That`s why I say looking it all over, looking at it, you know, totally, on both sides of the issue, I think the general trend is going to be up right on through 2004.

CLARKIN: OK, Michael. Let`s go right to the phones where we have Dan in Illinois standing by.

Dan, welcome. Happy Thanksgiving and your question for Michael?

Dan, are you there?

CALLER: Happy Thanksgiving - yes. Happy Thanksgiving to you, too. And I currently work for Tyco International [Company: Tyco International Ltd.; Ticker: TYC ; URL: http://www.tycoint.com] and I was curious of the long- term outlook for Tyco. I`ve been doing some dollar cost averaging since 2002.

CARTY: OK. We`re not holding Tyco but we`ve been avoiding it, in fact, because of all of the troubles it`s having. One could always look at this as being a very distressed situation but, as you see by the chart, it has been rebounding. Dollar cost - I`m more (ph) concerned about your dollar cost averaging because if you work for Tyco and you have a big position in the stock, you`re taking twice the risk as let`s say an ordinary investor. So I would seriously think, you know, consider how big is this position relative to my total portfolio and then I would seriously consider some diversification.

CLARKIN: Just out of curiosity, Dan, are you still with us? No. OK. Just curious what it was like to work at Tyco during this ...

LISOVICZ: Morale`s got to be ...

CLARKIN: Exactly.

LISOVICZ: ... a real issue.

CLARKIN: ... also wonder if he was at the party by any chance.

LISOVICZ: Sardinia (ph)?

CLARKIN: Sticking with the phones, we have Vaughn in Idaho standing by.

Welcome to the show.

CALLER: Hello. First of all, thanks for allowing us to do these calls. It means a lot. My question is on Veritas [Company: Veritas Software Corporation; Ticker: VRTS; URL: http://www.veritas.com/]. I`ve owned it early on and it`s had a really good run and PE`s over 100. I have a hard time trying to figure out where to put in the trailing stock. Do you put it 10 percent below the 50 day? Do you put in 10 percent below the 13 day and try to pick it back up at the 50 day? How do you check your volumes to know if it`s headed down or headed up? Can you give me some advice?

CARTY: Yes. First off, Veritas is a very good stock. We don`t own any of it. The...

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