Kumar?
Steve,
Sorry, I was wrong......
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Dell Cut to `Buy' by US Bancorp's Ashok Kumar; Shares Fall
Round Rock, Texas, Aug. 2 (Bloomberg) -- Dell Computer Corp. shares fell as much as 6.8 percent after an analyst said the No. 1 direct-seller of personal computers might be unable to meet sales growth expectations because of weak demand for PCs.
Dell shares fell 2 37/64 to 38 63/64 in early trading after declining to 38 3/4. They had fallen 19 percent this year through yesterday.
Dell lacks ``adequate earnings power in notebooks, server and non-system revenue'' to offset weakness in consumer and commercial desktop PCs, said Ashok Kumar, a U.S. Bancorp Piper Jaffray analyst. ``We're skeptical that the company will be able to meet 30 percent revenue-growth projections on a sustainable basis.''
Kumar cut his rating on Dell's stock to ``buy'' from ``strong buy.''
Industrywide, second-quarter PC unit shipments rose 14.5 percent from the year-earlier period, said IDC Corp., a market-research company. IDC had expected growth of slightly more than 15 percent.
Dataquest Inc. said global shipments rose 18 percent, below its forecast for 18.5 percent. IDC said U.S. shipments rose 7.2 percent, while Dataquest pegged U.S. growth at 11.5 percent.
Aug/02/2000 9:50 ET
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