Today's IBD .....
#1 Story:
Dell Computer after the close reported fourth- quarter profits grew 55% to 31 cents a share. That met published estimates, though some analysts really expected 33 cents, said Piper Jaffray analyst Ashok Kumar. More important, sales grew only 38% to $5.17 billion, below views and the weakest growth in 17 quarters. Sales growth averaged 53% over the past four quarters. Rumors about slowing growth hit Dell's stock last week.
Dell shares tumbled 13 1/4 to 75 1/2 in after-hours trading. It said its growth ranked ''No. 1 among key competitors,'' at ''3 1/2 times the market rate.'' Revenue grew 39% in the Americas, and 40% in Europe. Inventory fell to six days worth of goods from seven days last quarter. The PC maker's operating margin rose to 11.4% from 10.6% a year earlier due to cost controls. Dell also set a 2-for-1 stock split, payable March 5 to shareholders of record Feb. 26.
Page 2 blurb about CPQ:
Compaq adds local web site Zip2, forms several networking alliances -
Compaq bought Zip2, which offers maps, entertainment, and other information for residents of various cities, for an undisclosed amount. Compaq will add Zip2's content to its Alta Vista portal, which it hopes to spin off later this year. CPQ also formed new partnerships with several companies to speed up delivery and installation of new networking equipment products. The new partners include BMC Software, Entrust Technologies, Nortel Networks, Picture Tel and IBM's Tivoli Systems. CPQ also completed its $220 million purchase of Shopping.com, an online retailer.
The following leading funds over the past 3 years were profiled - Alger Growth B, Fidelity Select Computers, Janus Twenty, American Century 20th Growth, SIT Large Cap Growth. Pegasus Growth Fund CL 1, Magna Growth and Income Fund, and First American Y Technology Fund:
CPQ listed as a top sell of Alger Growth B and American Century 20th Growth, the #6 holding of Fidelity Select Computers and the #5 holding at First American Y Technology Fund.
DELL listed as a top sell at Magna Growth and Income, a top buy at Alger Growth B, American Century 20th Growth, and First American Y Technology Fund, and the #1 holding of Fidelity Select Computers, #1 at Janus Twenty Fund, #5 at American Century 20th Growth, #10 at SIT Large Cap Growth, and #1 at Magna Growth and Income.
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