Inside scoop... I just wish I had specifics, cuz this "hearsay" doesn't hold as much water. But I'll throw it out anyway for what it's worth...
I was talking to a husband of one of my patients who is a salesperson for a large software co. (which, I don't know and that's where it gets fuzzy). But he was telling me his company sells the software that helps large tech co.'s write and set up their software. He said they sold to HWP, Agilent (I think) and a couple other names... He started talking about what exactly they do and it sounded like "blah blah blah" to me. ANYWAY, the point of this story was: I asked him if this economic slowdown was effecting his company any and he said oooooooh yeahhhhhh. He said this quarter he could see them doing just fine because he's closing out a lot of deals that he started 1 and 2 quarters ago, but.... as far as forward quarters go... he said forget it. None of the bigger companies are buying his stuff anymore at this point which he said those companies need to stay on top of their future productions. Again, the specifics aren't mine. My take home message was that even though companies are coming out with so so earnings, next quarter may still be UGLIER cuz of less buying right now! I also see companies that are firing all these people having to go through a couple of quarters to make that take effect in their cash flow/balance sheets.
I don't think a one or two day rally means we're out of the woods. I still hold ss on PRGN, RIMM, CCMP, and BAC. I think the volatility, however, is our friend. Trade up or down. Tomorrow I see as another up day, but without as much vigor. |
