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To: nokomis who wrote (34214)	7/7/1999 5:13:00 PM
From: Ruffian	Respond to of 152472

Ericy Not Good> Wednesday July 7, 4:55 pm Eastern Time (Note: this article is ''in progress''; there will likely be an update soon.) Ericsson says consensus Q2 EPS forecasts too rosy STOCKHOLM, July 7 (Reuters) - Swedish telecommunications group Ericsson , whose chief executive quit unexpectedly on Wednesday, repeated a warning that the second quarter of 1999 could be as difficult as the first. Gary Pinkham, Ericsson's vice president of investor relations in New York, also told Reuters market consensus forecasts for the group's earnings per share (EPS) ratio during the second quarter were ''too optimistic.'' The company is due to release its first half report on July 23. ''We aren't saying anything different -- the second quarter is going to be challenging and in relative terms could be as bad as the first quarter,'' he told Reuters in a telephone interview. ''Some market EPS estimates were a bit too optimistic, causing the consensus to also be,'' he said. He was speaking after a telephone conference which many parties were unable to access because of technical problems. In the first quarter of 1999, Ericsson's pre-tax profit dived to 1.302 billion crowns from 2.637 billion in the same period of 1998. Its EPS fell to 0.49 crowns from 0.94. Pinkham said that U.S. market estimates of an EPS of 15 U.S. cents per share in Q2, after six cents in Q1, were too optimistic. But he noted that the company still expected its restructuring efforts to start having a positive effect on earnings in the second half of 1999. ''This year we will start to see some benefits, we will spend 2.25 billion crowns on restructuring but see a gain of 750 billion which will lead to a net cost of 1.5 billion,'' he said. ''In 2000 there will be a net gain of 1.5 billion crowns followed by three billion from 2001,'' he said. Ericsson's share had plunged by eight percent to 262 crowns at the close in Stockholm on Wednesday. The abrupt departure of Chief Executive Sven-Krister Nilsson sparked concern of a further profit warning ahead of the group's Q2 report. (Note: this article is ''in progress''; there will likely be an update soon.)

To: nokomis who wrote (34214)	7/7/1999 5:26:00 PM
From: Cosmo Daisey	Read Replies (1) \| Respond to of 152472

nokomis, Q* has made a terrific run and has pulled back 11 points from the high set a few days ago. This is normal market action and doesn't have to mean anything else. Stocks need to pull back a little to gain momentum for the next upleg. I placed a limit order just above the low for the day after the price started to recover expecting the price to pull back to test the low. The price did retreat and my order was filled. This is how support is established, orders placed just above the daily low get filled on the interday pullback. The market makers have to be short big time after the run Q* has made. Qosmo