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CNN Sunday Morning

Interview With Margaret Popper

Aired July 28, 2002 - 08:23   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THOMAS ROBERTS, CNN ANCHOR: Hi everybody, and welcome back. We turn now to Wall Street. You know, it's been a wild ride for the past few weeks, and several hours from now, the markets open again -- not to make you upset, but Monday is coming.

The Dow closed up for the week in Friday, but many investors still have the jitters, what can we expect in the weeks ahead? Here to help us talk about that is Margaret Popper, with "Business Week" magazine.

Margaret, thanks so much for joining us.

You know, it was this time last week that everybody was really apprehensive about going in on Monday to see what was going to happen, because they just knew it was not going to be a good day. But now, coming off this past Friday, things look up.

So, what's ahead for this Monday?

MARGARET POPPER, BUSINESS WEEK: Well, I think that we may get a little more upside this coming week, but I think the reality is that over the next few weeks, we're going to bounce around along a bottom here. I don't think that the earnings problems that the market is worrying about have really been cleared up.

I mean, one of the big, big uncertainties is, come August 14, all CEOs have to sign this paper that says, I'll go to jail, if my statements are wrong. Now, we don't know how that's going to be interpreted, but one thing you do know is, it sure makes CEOs want to reconsider and have the most conservative, airtight accounting they possibly can.

ROBERTS: Well, in thinking about that, though; what do you think could be a big looser this coming weekend, and the weeks to come up until August 14?

POPPER: Big losers, well, I mean -- I think the entire telecom sector is really being dragged down right now. They're having a lot of problems with demand, and obviously what's happened at WorldCom doesn't make anybody feel any better in that industry.

So, you know, I think that some of the other telecoms, even the ones that we've come to really think are established, like Verizon, and some of the baby Bells may, you know, they may also feel this strain.

ROBERTS: And, Margaret, break out your crystal ball -- will companies like WorldCom and Enron continue to exist in some form?

POPPER: Oh -- I -- they could, they could, I mean, obviously a company like WorldCom has a lot of assets, it's got a lot of value there. It also continues, you know, to sell services.

I read this great analysis from a friend of mine, Dale Reins (ph), who is a financial adviser up in Massachusetts, and he sent me this thing saying, "If you had invested a $1,000 in WorldCom, you'd now have, I don't know, about $15. If you had invested $1,000 in Budweiser beer, drank all the beer and actually turned in the cans, you'd have $214."

So, that tells you something about relative value. Dale's (ph) advice is to drink heavily.

ROBERTS: Good analogy -- Margaret Popper with "Business Week." Thanks so much for your insight.

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