Investing in Technology and Telecom Stocks

NBCi presents

July 19, 1999

Jundt Associates Chairman and Portfolio Manager James Jundt answers questions about investing in technology and telecom stocks.

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CNBC: Welcome to CNBC.com's MoneyTalk Live! Our guest today is Jundt Associates Chairman and Portfolio Manager James Jundt. He's here to chat about the healthcare, technology and telecom stocks that propelled his Jundt Twenty-Five Fund to double digit growth this year.

Rogue Trader: Ron referred to your fund as non-diversified growth fund. what does that mean exactly?

James Jundt: There are regulations that govern the size of holdings and regular mutual funds. Non diversified funds have a certain percent of their assets exempt from that. For example.you could initiate 10-15% position in one holding. In other words, the rules as to diversification are a little more relaxed in a non-diversified fund.

Marianne: Your outlook on VisX and LVCI, please?

James Jundt: VisX we think is an ideal investment to participate in the segment of the health care industry which is benefiting from the aging demographics of America. We know the baby boomers of America, the first thing that goes when you age are the eyes Second quarter revenue was 62 million.double of a year ago. The stock has been a good performer Analysts have been upgrading their estimates The market has turned out to be much larger than anticipated.

Hot Stock: Would it be wise to purchase WCOM at its current price and sell Priceline at its current market value?

James Jundt: That is a difficult decision. They are two different types of investments. One involves a company that has billions of dollars in revenue, which is WCOM. And the other company's revenues on an annual basis are less than a half billion. WCOM is a much more conservative investment, although the company is growing very rapidly. Priceline would be defined as a speculation, in our opinion. Obviously, stock on a multiple basis would be valuated very highly. We would opt towards WCOM versus Priceline.

Buy N Hold: How is your fund different than the thousands of other funds?

James Jundt: Basically, we are looking for the 25 fastest growing companies in America. We spend a great deal of effort to determine the long-term growth rate of these companies. Probably less time on near term price considerations are less important to us than the long term. Whereas I think many investors spend more effort on determining the appropriate price than on the long term growth.

SFCarl: I see your fund holds a lot of healthcare stocks.which ones do you think have the most room for growth?

James Jundt: One of the stocks that we are most enthusiastic about is an issue which hasn't done well thus far in 1999. And in fact, the stock is only modestly higher than it was at the bottom of the October low in 1998. The company is Monsanto. Historically, the company has been followed by the chemical analysts. But the company in the last two or three years has transformed itself to one of the most powerful agricultural biotech companies in the world. Recently, they launched an arthritic product Cox2 inhibitor which had a larger launch than Viagra did for Pfizer. It is our opinion that as investors, you become more aware of the transformation of this company from a chemical firm to a biotech drug firm that there is substantial room for appreciation. The company's earnings should grow at a rate of 25 to 35 percent. Over the next few years, that is.

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