Bluegrass Portfolio Management Issues Bullish Forecast For Telecom Stocks

Bluegrass Portfolio Management LLC, a Lexington, KY based investment advisor, has announced an upgrade for telecom sector stocks.

(PRWEB) August 4, 2005 -- Bluegrass Portfolio Management LLC, a Lexington, KY based investment advisor, has announced an upgrade for telecom sector stocks. Following a multi-year lull, the telecom sector started to recover with the rest of the market in 2003. Although these companies saw a difficult start to this calendar year, the AMEX Telecommunications Index has rallied 14.6 percent off of this year's lows. The advisor thinks that's just the beginning of what is expected to be a long-term rally.

Chief Analyst James Brumley is eyeing several individual stocks, with Alltel Corporation at the top of his buy list. "Alltel has been one of the persistent leaders in this group" he states, "and has managed to make gains even when the broad market has not." He adds "Alltel's strength shouldn't be a surprise. Earnings are growing at a rate of more than 60%, and revenue is growing at 8%. That may not be impressive by tech stock standards, but for this industry, that's very solid."

As an alternative to an individual telecom stock, Brumley recommends the AMEX Telecom HOLDRs. The advisor frequently uses exchange-traded funds such as these to take advantage of sector and industry trends. Liquidity can be an issue in some cases, but in the case of the Telecom HOLDRs, there's enough trade volume to provide an adequate market for all but the biggest of portfolios.

Bluegrass Portfolio Management, LLC manages brokerage and retirement accounts for investors seeking better than average returns, while only assuming moderate risk. Their primary holdings are individual equities, and funds or ETFs are used to strategically diversify portfolios. The advisory is best known for its unique philosophy that diversification is misused in the investment industry. While allocation plays a critical role, Chief Analyst James Brumley argues that Wall Street preaches diversification to the point of dilution. Clients of Bluegrass Portfolio Management remain diversified across several industries and sectors, but they'll only own sectors that are outperforming the broad indexes. Bluegrass Portfolio is also known for style and regional strategies, as opposed to the typical focus on large-cap stocks, and companies in the news.

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