Scrapps, check this out: Not to fear-monger, but this rumor I just found would explain a lot of today's action, particularly in the box-makers:
If it happens that GTW does warn in the morning, it may put a damper on any networker rebound. But hey, I have no idea.
Gateway off on earnings warning rumors
NEW YORK, June 4 (Reuter) - Shares of Gateway 2000 Inc tumbled in active trading amid rumors that the direct marketer of
personal computers would warn of an earnings shortfall Thursday at the PaineWebber conference, traders said.
``There is a rumor that they are going to pre-announce earnings at the PaineWebber conference,'' said one trader, adding that
such announcements ``are not usually good.''
Gateway shares were off 1-7/8 in heavy trading on the New York Stock Exchange and its options were also active. Gateway
officials were not immediately available for comment.
Gateway 2000's chief financial officer David McKittrick and James Collas, senior vice president of global products, are
scheduled to make a presentation at a PaineWebber stock conference Thursday morning.
``It's all over the Street that they are going to pre-announce earnings at the PaineWebber conference,'' another trader said.
The rumors were pulling down shares of other personal computers makers as well. Shares of Compaq Computer Corp (CPQ)
dropped 3-1/8 in heavy trading and Dell Computer Corp (DELL) lost three to 105-1/8 in heavy trading.
Gateway, of North Sioux City, S.D., is expected to release its second quarter earnings on July 25. The consensus on Wall
Street, according to First Call, is for second quarter earnings of $0.90 a share. The range of estimates is for $0.86 a share to
$0.95 a share.
Friday, Intel Corp (INTC) stunned Wall Street when it said its second quarter earnings would fall short of expectations, due to
weaker than expected demand, particularly in Europe. Then news from Seagate Technology Inc (SEG), which warned late
Monday about weaker fourth quarter results, fueled concerns among investors about a coming PC slowdown.
Chris |
