No Safety In Large Caps

Charles Jordan's picks were punished...but many are bound to recover

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Charles Jordan Jr. feels your pain. “People are investing hard-earned money; I feel badly for the turn the market took, but these are still solid companies,” explains the confident CEO of Jordan Advisory Corp., a $106 million money-management firm based in midtown Manhattan.

Last October, Jordan crafted an exclusive portfolio for BLACK ENTERPRISE readers. His picks, however, were trampled by the stock market’s downward spiral, losing 57.42% since recommendation. “A recovery is in sight…distant sight, but it’s on the horizon,” says Jordan, 53. “This market takes three steps forward, two steps backward, and one step to the side.”

When fine-tuning a portfolio for clients, the 20-year veteran chooses from up to 60 equities, seeking companies that are undervalued, usually placing 25% in a favorable sector. Jordan still likes technology, but he’s cautious.

Cisco Systems Inc. (Nasdaq: CSCO) shocked investors with a 74.7% plunge. The San Jose, California-based Internet router and switch maker recently sold at a humbling $16.20. “I’m guardedly optimistic for now, but I expect things to pick up in the 3rd and 4th quarters [of 2001],” says Jordan, who recommended the industry leader at $63.

Recently, Cisco invested in a promising start-up developer of voice-activated applications software. Jordan says he would buy more Cisco, expecting that its expansion will push the stock price up.
Applied Biosystems Group (NYSE: ABI) saw its stock price free-fall 68.7%. The Norwalk, Connecticut-based maker of scientific research technologies fell in spite of its monumental partnership with Celera Genomics, the company credited with mapping the human genome. The alliance is helping the stock price stabilize at an affordable $24.

Intel Corp. (Nasdaq: INTC) handed its loyal investors a 60.3% loss. Although Jordan advises putting a “hold” on the Santa Clara, California-based computer chip maker if it’s already in your portfolio, he says, “buy” once momentum kicks in. He believes Intel, which recently sold for $27.79 could climb as high as $40 by fall 2002.

Citigroup Inc. (NYSE: C) has performed well, considering sliding a mere 0.4% since last year. Jordan asserts that the New York-based company is “a financial workhorse that’s very well managed.” Jordan’s firm owns the stock, which recently sold for $49, and he says it could climb to $70 this year.

Corning Inc. (NYSE: GLW) has simply mauled investors. “This one hurt,” confesses Jordan. The Corning, New York-based fiber optic torchbearer showed a dreadful loss of 83% and now has a gloomy $14 price tag.