In the UK at soccer matches when you're team's getting its butt handed to it... the opposing team is likely to chant --- "it's all gone quiet, its all gone quiet, all gone quiet over there." I thought that we on the amat thread were tougher than that.
Its old news... but with AMD talking up the asia problem, I thought I'd post it anyway... I edited out bits of the article but I left the relevant sections in tact.
Tuesday, April 7, 1998, 6:30 p.m.
Tech Stocks Take a Tumble
By Nelson Schwartz
TECH TUMBLE (AGAIN).... I don't like it any more than you
do. Look at the NASDAQ most active list over the past couple
of days and you're staring at a sea of minus signs. It's
more depressing than that new movie about Kurt and Courtney.
Anyway, Intel was weak again, falling 1 1/4, to $72 5/8.
Kurlak claims this stock is going down into the low 60s, at
least, although that seems a little harsh. Microsoft,
hammered by Justice again, dropped 2 11/16, to $87 1/4. Even
Lucent, which seemed immune to profit-taking before this
week, dropped 3 1/8, to $66 3/8.
MOTOROLA MUDDLE.... Not to sound like a professor, but
today's big Motorola drop carries some important lessons for
investors. First, don't get too hung up on the actual number
that a company reports. Sure, it's bandied about on the Net
and CNBC, but what's more important is what the company says
during the conference call that usually follows earnings
announcements. Yesterday, MOT made the number--23 cents in
the first quarter--but shocked investors with its prediction
that second-quarter results would be "well below"
expectations. Second, and more important, don't be too eager
to buy a tech stock in hopes of riding a turnaround story.
Reversing course in the tech business is tough, especially
for a company that's been losing earnings momentum for a
while. MOT shareholders learned this the hard way--the stock
dropped 6 3/8, to $53 1/2, down from a 52-week high of $90
1/2. |
