OK, now the reason for the two drops of late ...
biz.yahoo.com
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Thursday April 15, 1:48 pm Eastern Time
RESEARCH ALERT - Montgomery cuts data storage cos
NEW YORK, April 15 (Reuters) - NationsBanc Montgomery Securities cut its ratings on four makers
of data storage equipment based on a survey that suggested a macro-economic spending slowdown
associated with Year 2000 repair work.
-- In a research note, analyst Paul Fox said he had his ratings to hold from buy for EMC Corp.
(NYSE:EMC - news), Seagate Technology Inc. (NYSE:SEG - news), Hutchinson Technology Inc.
(Nasdaq:HTCH - news) and Maxtor Corp. (Nasdaq:MXTR - news).
-- The analyst said a survey of 45 major companies to determine the potential for a freeze in new
purchasing related to repair of potential Year 2000 glitches, found that 30 of the companies, or 67
percent, would significantly slow or freeze spending by the fourth quarter of this year.
-- As a result, Fox cut his fourth quarter earnings estimate on EMC to $0.51 from $0.59 previously. The consensus had been $0.61, he
noted. ''We would not be surprised to see some very good quarters (Q1 to Q3), particularly because there is acceleration prior to
freezes,'' Fox wrote.
-- EMC stock lost 10 percent to to 112, down 13 on the day, in composite U.S. stock exchange trading. Hutchinson gave up 2-19/32 to
20-7/8, Seagate fell 1/2 to 27-11/16, and Maxtor dropped 7/8 to 7-7/16.
-- In response to its stock's plunge, EMC issued a statement reiterating its expectation that its revenues and earnings will grow in
excess of 30 percent in 1999. It cited a survey of more than 250 corporate customers it conducted in the first quarter of 1999 to support
its bullish views. |
