Father & ALL:, I think the reasons for todays sell-off are as follows:
Tom Kurlak (Merrill Lynch's semiconductor analyst) painted a pretty bleak picture for the semiconductor industry. He mentioned the problems affecting the semiconductor companies will also impact the equipment makers, and the pc box companies; ie, Dell and the others. The problems he pointed out include the chip makers over capacity for producing memory chips and micro-processors, the market shifting toward sub 1000 dollar pc's, and the situation extending past 1999. When pricing goes down, margins and profits follow. So, the institutions dumped the stock in a big way. Dell traded in the area of 32 million shares today. If Dell doesn't meet the numbers next week, the floor will fall out.
National Semi pre-announced yesterday...won't make their numbers.
HP's pre-announcement followed by the release of their earnings today.
The Fed meeting next week...many analysts are looking for a rate hike.
The SEA problem. Rioting, recessions, etc.
India and the atom bomb.
Hell, I stopping here as I'm now starting to depress myself.
When all this sh-t hits the wall at the same time, I can easily see why Dell dropped today. Dell's conference call had better address these problems and clearly explain why they aren't going to be affect by all this crap.
What's your take on the situation??
Stock Bull |
