I do think we're on the cusp of -- at long last, mind you -- a nice PC cycle. Compaq actually posted a pretty good quarter last quarter. And even if they don't merge with HP, I think this company under $10 has some nice stand-alone value.

It has very steady results. They are one of the leaders in software for engineering simulation where an engineering designs a product, wants to see when they actually go to prototype if it is going to work. They have very consistent results and I actually think when they report their quarter in the next week or two, it'll be an upside surprise.

If you're a long-term investor, do you really want the same amount of money in Microsoft and (tractor maker) Caterpillar?

If you fast forward your clocks to Dec. 31 of this year, you're going to have yet another year in which the Nasdaq, driven by technology stocks, is going to outperform the S&P 500 and the Dow Jones industrial average.

I'm revising my outlook now. I'm thinking hopefully we're through the worst.

The bottom line on these conference calls is that the outlook is not going to be rosy.

Storage has been a very strong market and this company is definitely a leader.

I've been light on personal computer stocks for some time because of the secular trend which I think is negative towards the PC vendors. I believe units will continue to grow worldwide at about 15 percent per year, but average selling prices, now with the advent of the $200 and $300 box, are stopping like stones, and I don't see that changing anytime soon.

We've had a massive revaluation of high-P/E stocks that may have sterling fundamentals, but people say 'I am not going to pay those prices anymore.' So, they might be more willing to pay for stories that are clean but that also have a valuation basis.

We don't know when (that revival will be) and that makes it very worrisome.