To All, Today the tech stocks got a healthy dose of Marginbegone:
1. The funniest case was Intel, which a month or so back said the concept that low-priced pcs were dominating sales was simply not true. Today they missed eps due to the dominance of lower priced pcs. It is nice to see a lie blow up in a monopolist's face. their guidance is to expect slow revenue growth and deteriorating margins. Uh, that doesn't sound bullish to me. -g-
2. IBM, with "pc sales zooming and our market share growing," finally told the truth about their consumer pc biz. Things are tough and getting tougher in this commodity product.
3. Compaq just lowered prices by up to 24 pct. on the Armada's that are in such "short supply." Yes, CPQ is more efficient than most other pc boxmakers, but price cuts like this are going to hurt them over the long haul, unless they force the other geeks out of the business altogether. So far, many new entrants and few departees. As far as this stock goes, I am still waiting for the first shoe to drop on servers. It is just a matter of time.
Good luck, MB |
