Magazine article Black Enterprise

Fundamental Letdown: Eddie Ramos' Concentration in Tech-Related Firms Betrayed His Analytical Approach. (Stock Update)

Magazine article Black Enterprise

Fundamental Letdown: Eddie Ramos' Concentration in Tech-Related Firms Betrayed His Analytical Approach. (Stock Update)

Article excerpt

Last year, Eddie Ramos, portfolio manager of Brown Capital Management's International Equities Division in Baltimore, counseled that it was important to concentrate on company fundamentals when assessing international stocks. With the string of accounting scandals that have broken since his recommendations, his strategy of basing key buy-and-sell decisions on "analysis of the specific security and company within the context of our overall outlook for the economy and the market," seemed sound.

Unfortunately, the continued slump in the technology industry, along with uncertainty about war in the Middle East, worked against Ramos' stock selections. His tech-heavy Private Screening picks lost 39.46% over the 52-week period from Sept. 21, 2001, to Sept. 20, 2002. By contrast, the Standard & Poor's 500 index lost 14.13% and the Dow Jones industrial average lost 4.65% over the same period.

The bright spot among Ramos' pack was Israel-based Teva Pharmaceuticals (Nasdaq: TEVA), a fast-growing generic drugmaker. The firm's position as the No. 1 issuer of generic prescriptions in the United States helped its shares grow by 18.98%, going from $56.44 to $67.15.

The accounting scandals most affected America Online Latin America (Nasdaq: AOLA), which plummeted 91.69% from $3.25 to 27 cents per share. The U.S. Justice Department's probe of AOL Time Warner's accounting practices and the subsequent resignation of its No. …

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