How Many Californians Does It Take to Screw in a Lightbulb?

Christopher Edmonds chatted on AOL MarketTalk 5:15 p.m. EST Wednesday, Jan. 10.

Sage Lion: It's great to have you visit with us in MarketTalk today Chris!

CSEonTSC: Good to be with you -- sorry to be late -- the breaking news on PG&E and the California power crisis is keeping me hopping. But, now I'm ready -- let's get going!

Question: What are your thoughts on the PC sector going forward especially after a Bear Stearns analyst cut estimates on Dell Monday?

CSEonTSC: Clearly, both demand and competition have pushed PC prices lower, and it's a tough way to make a living today. I own a little Dell and like it for its non-PC biz. And, while I don't like the stock, I have to say the Steve Jobs presentation of the new Mac notebook was pretty cool!

Question: How much impact did Warren Buffett have on Coke's decision not to go ahead with the purchase of Quaker Oats late last year?

CSEonTSC: Probably not a lot, except for price/value analysis. Buffett is very well-known for stating his opinion and getting out of the way in companies like Coke. That said, his opinion clearly carries a lot of weight.

Question: Opinion on CPN? Thanks.

CSEonTSC: I'm long Calpine as of this afternoon. I think the California situation has pushed all of the gencos lower, and under $30, CPN looked very good to me, at least for a trade.

Question: One-year outlook for Amgen. Thanks.

CSEonTSC: Clearly the leader in the field. I don't have a position, but if you are looking to establish a benchmark position in the biotech area, AMGN is one of the plays. We have a couple of great biotech columnists at TSC and RealMoney -- you should check out their work.

Question: What's happened to my favorite Cisco? Will we ever see 58 again?

CSEonTSC: Ever is a long time. Tough love from Chambers today pushed the stock lower. Still at a pretty hefty multiple, but it is a great company. CSCO will ride again, the question is when. Check out the work of Jim Cramer on CSCO on Real Money today. Now that he is with us all the time, his stuff is even better than it was -- if that's possible.

Question: What are your thoughts on Ryan Jacobs' Internet Fund, did he get too heavy into dot.bombs?

CSEonTSC: Only one thought -- it was an ugly year...

Question: California is really getting what it deserves -- they don't want fossil fuel power plants, don't want nuclear generating facilities, don't have water for hydroelectric plants. What do they expect?

CSEonTSC: I have written a lot about California lately, as you may know. Gas is a solution but the problem right now is any generation at all. They are short generation, their deregulation structure is wrong (not dereg as a whole, but CA's version) and they don't want to build any plants, except those that don't pollute and don't look like power plants. It's reality time in California.

Question: Is this a good time to buy XOM or CHV? Thanks.

CSEonTSC: Energy stocks have had a nice run, however, if you believe the price thesis that oil will stay above $25 and gas above $4, then you have to like the sector. I think I might pay more attention to some of the energy service and focused E&P companies. Nothing wrong with the big, integrateds, just like the cash-flow growth prospects of the more focused companies a bit better.

Question: Any thoughts on the Web TV ArmChair being offered by La-Z-Boy/Microsoft?

CSEonTSC: Funny you should ask, I'm taking up a collection to buy one right now. And, if all of you would go out and buy a copy of our new book, TheStreet.com Guide to Smart Investing in the Internet Era I can buy one tomorrow! (You can find it on Amazon!)

Question: What is the news from MOT??

CSEonTSC: 15 cents a share, in line with lower numbers.

Question: Do you feel alternative energy stocks make sense here, what with all the problems California is experiencing?

CSEonTSC: I think the technology makes sense, but I think in this market environment, you will have to be patient with the stocks. I think the leaders like Ballard, Fuel Cell, etc., have good ideas and now they simply have to execute -- that may be a year or two away and that means volatility in the stocks. But, long term, fuel cells and especially distributed generation holds tremendous potential. Be patient.

Question: What are your thoughts on Boeing as a future growth stock?

CSEonTSC: Order flow looks good -- company had a nice run last year. My biggest worry is a soft economy over a longer time period and the possibility of orders being cut or becoming softer.

Question: What are your thoughts on Warren Buffett having started buying junk bonds a couple of weeks back?

CSEonTSC: He sees value, but he also has deep pockets and unlimited time, for him anyway. I think he is smart money and you pay attention but if you want to play that area, most investors are better-off looking at funds.

Question: Morgan Stanley Dean Witter announced that AT&T is undervalued by 75%, due to "restructuring" and the recent Fed rate cut. Any comments?

CSEonTSC: Yawn -- maybe or maybe not. I said on the TSC that I thought that was a nice call for a company looking for banking business. Was ATT going to zero -- no. Is it a solid, safe growth play? No. It's a company in search of a strategy. That's enough to keep me away. Too many other ideas out there.

Question: Does Buffett still have all that silver in a vault somewhere?

CSEonTSC: Hold on, let me call him! Seriously, doesn't own what he did but probably still has at least a few coins. By the way, I think the Berkshire annual meeting could be very interesting this year. If you own stock, you should head to Omaha in May. After such a value year in the markets, I think his commentary could be enlightening. Speaking of enlightenment, nothing is more enlightening that the new book we have written at TheStreet.com. TheStreet.com's Guide to Smart Investing in the Internet Era. Amazon has a copy just for you!

Question: Do you think tech funds will see a solid comeback this year, or will it be a slow process?

CSEonTSC: I think the first quarter-plus will be tough, but I do think you will begin to see some basing and then a nice rally toward the end of the year, if the economy chugs along.

Question: What about GE? Will price go lower and why, if it does??

CSEonTSC: Like GE, but don't own it. I think the sluggishness is a real good example of the change in sentiment. Investors used to focus on only the good parts of GE. Now, they only focus on the possible problems. Looking interesting at these prices.

Question: What do you think of Xerox receiving $435 million in financing from General Electric's Capital unit?

CSEonTSC: Think the bankruptcy rumors were an exaggeration. Think GE is a pretty smart lender, not withstanding the Wards investment. They see some long-term value.

Sage Lion: Thank you for joining us today, Chris! We appreciate your insights!

CSEonTSC: Good to be here, as always. Tomorrow will be interesting with the effects of the Yahoo! news. Hope to see you on TheStreet.com and RealMoney. Look forward to being back soon. Have a great evening. And, be prudent and patient in this market ... always look to invest another day!