Dell falls as analyst sees hints of tech softness
Reuters, Tuesday, October 20, 1998 at 17:54
NEW YORK, Oct 20 (Reuters) - Cautionary comments on the
overall outlook for information technology spending by an
analyst at investment firm Piper Jaffray sent shares of Dell
Computer Corp (NASDAQ:DELL) lower in afternoon trading on Tuesday.
Traders cited comments from Piper Jaffray analyst Ashok
Kumar as triggering heavy late selling in Dell. A
representative in Kumar's office, however, said the analyst
made only broad comments about the industry and left unchanged
his investment guidance and earnings estimates on Dell.
"(Kumar) did make a macro-call on IT spending and that we
are getting indications of weakness in the IT spending cycle,"
said Paul Mansky, Kumar's assistance at Piper Jaffray.
For its part, Dell Computer, which has posted the strongest
and steadiest growth among personal computer makers, said after
Tuesday's close that it sees no weakness in its market and that
demand for computers remained strong.
Dell shares ended the session down 3-15/16 to 53-5/16 on
volume of 39.3 million shares.
Copyright 1998, Reuters News Service |
