Todd Eberhard's Picks: G.E., Nokia, Sun Microsystems, Metromedia Fiber Networks
DAVID HAFFENREFFER, CNN ANCHOR: We are back now with stock strategist Todd Eberhard of the Eberhard investment associates. He's back with us now and joins us to talk about some of the stock picks. What do you like in this rising interest rate environment, we'll call it?</s>TODD EBERHARD, EBERHARD INVESTMENT ASSOCIATES: OK, that's probably the right environment to talk about. There's a few stocks out there that we're looking at that we think are interesting right now for different reasons, first one being General Electric. A lot of positive things on this stock. Obviously, it's one of those companies out there that actually make money, which is unusual. That's why people don't like it recently. But actually, it's fallen down dramatically following the Dow down, and we think with the Dow being where it is and probably a good time to turn around...</s>HAFFENREFFER: Is that because of its financial component?</s>EBERHARD: We -- that's what the rumor is and that's what the discussions are, but we think also just in general people thought it got bid up pretty high, brought it down, oversold it. At this point it's probably not a bad time to buy.</s>HAFFENREFFER: OK. You also like Nokia.</s>EBERHARD: Yes. Nokia's excellent. Phone technology, obviously, everybody knows. With the concept of wireless Internet connections, we think they're going to be one of the two, after Ericsson and possibly Motorola, one of the leaders in that area, and that's a place to be, we think, for the long term. Even a high-priced stock like that is still excellent.</s>HAFFENREFFER: And Sun Microsystems.</s>EBERHARD: Can't say too many bad things about that. I saw the story this morning where they also, along with Microsoft, invested $25 million each into a company. We like the fact that they're expanding their base. Great company, good operating system, good alternative to Windows 2000.</s>HAFFENREFFER: And finally, one that is perhaps not a household name, Metromedia Fiber Networks.</s>EBERHARD: Right. They do connections for the Internet systems, basically high-speed connections, which is the backbone of the whole Internet. Whether it's business-to-business, business-to-government or consumer sales, it's the area that people have to go to to connect with more and more speed, and that's a company we think will be at the forefront of that.</s>HAFFENREFFER: Does it concern you that people are holding stocks for such a short period of time now than they ever had in the past?</s>EBERHARD: Well, that's certainly what's causing a lot of this volatility on a day-to-day basis: the day traders, the people who were not day traders before but now are seeing rapid rises in one day of five, 10, 15 points and take their profit and run away. So that is definitely causing concern and changing the market environment. But we think that's going to continue for some time, at least as long as volatility over all continues.</s>HAFFENREFFER: All right, Todd, good to see you.</s>EBERHARD: Good seeing you.</s>HAFFENREFFER: We should not here that Todd will be joining us in the next hour on CNNfn.