Victor, I don't understand this market, I really don't.
How could a company like CSC lose 39% of its MC in one day?
I haven't had a position in CSC short or long for a long time so I have no axe to grind.
Look at the volume, 14mil vs av volume of 2.2. That's elephants selling not little guys.
I think the elephants are in panic mode, which is not a good sign.
Btw
My IRA is down, my Sep is down, my speculation account is up only because I can short in it!
>EL SEGUNDO, Calif., Mar 16, 2001 (The Canadian Press via COMTEX) -- Computer Sciences Corp. plans to cut 700 to 900 jobs, or about one per cent of its global workforce, and said it will miss earnings forecasts by a wide margin this quarter.
The company blamed reduced demand for traditional information technology consulting as the effects of a slowing economy continued to spread across the tech spectrum. CSC's stock price tumbled 39 per cent.
The company said the worldwide economic environment, as well as the demand for consulting and systems integration services, has deteriorated, part of a ripple effect that is hurting CSC customers first and trickling into other parts of the market.
It was the latest in a series of recent earnings warnings from technology concerns including Compaq Computer Corp., Oracle Corp. Gateway Inc. and Dell Computer Corp.
For its fourth quarter ending March 30, Computer Sciences said Friday it expects to earn 35 to 37 cents US a share on revenue growth of 11 to 13 per cent.
Analysts surveyed by Thomson Financial/First Call had expected earnings of about 92 cents a share for the quarter.
For the fiscal year, the company said it expected revenue growth in the 13 per cent to 15 per cent range and earnings per share in the $2.50 to $2.60 range.
In trading on the New York Stock Exchange on Friday, Computer Sciences shares were down $21.10 at $33.
The job cuts are part of a restructuring plan that will result in a fourth quarter charge of $100 million to $150 million, in addition to further charges associated with its acquisition of Mynd Corp.
Computer Sciences Corp., in operation since 1959, is one of the world's leading consulting and information technology services firms. It has more than 68,000 employees worldwide with revenue of $10.2 billion last year. |
