Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Discuss Year 2000 Issues -- Ignore unavailable to you. Want to Upgrade?

To: flatsville who wrote (8933)	10/14/1999 4:58:00 PM
From: flatsville	Respond to of 9818

As some of you may have noticed The Street took Unisys out and shot it today. I just heard Bob Pisani on CNBC say something to the effect that traders were agahst at the punishment it received, but there was a lot of comment on the floor to the effect that the company may have trouble into the first quarter due to y2k...that this y2k thing is a real problem...as though this was some sort of epiphany... Good Gawd! Are they really this stupid? (Did I really just ask that question?) ----------------------------------------------------------- October 14, 1999 12:51pm Unisys shares plummet despite strong 3Q earnings Fair Use/etc... By Larry Barrett ZDII Unisys Corp. (NYSE: UIS) beat Street estimates by 7 cents a share in its third quarter, but its shares plunged 14 1/4, or 34 percent, to 28 Thursday because its total sales improved only 4 percent compared to the year-ago quarter. Making matters worse, Unisys said its revenue growth will be "sluggish" in the fourth quarter though it will likely meet analysts' earnings estimates. The computer services provider raked in $137 million, or 43 cents a share, on sales of $1.87 billion compared to $67 million, or 25 cents a share, on sales of $1.79 billion in the year-ago quarter. "We delivered a sharp increase in earnings in the third quarter," said CEO Larry Weinbach in a prepared release. "A better-than-expected performance in our technology business, combined with margin improvement in our services business and continued tight expense control, helped us achieve an operating profit margin of 12.3 percent compared to 11 percent a year ago." Last quarter, Unisys hurdled analysts' estimates by a nickel a share, earning $119.7 million, or 38 cents a share, on sales of $1.89 billion. Without the negative effect of translating foreign currencies into U.S. dollars, sales would have grown 7 percent. By contrast, second-quarter revenue grew 12 percent, or 9 percent, including the effect of currency translation. Most analysts were expecting sales growth of around 8 percent this quarter. In the quarter, Unisys continued to retire preferred stock and debt in a bid to lighten a staggering load of debt payments and preferred dividend payouts left over from the 1986 merger of mainframe makers Burroughs and Sperry that formed Unisys. Over the past two years, the company has reduced long-term debt by $1.3 billion and slashed annual interest expense by more than $125 million. Long-term debt is now less than $1 billion. "While we are making excellent progress in reducing costs, improving margins, and transforming our balance sheet, we clearly have work to do in accelerating growth at the top line," Weinbach said in the release. Unisys reported good revenue growth in international markets in the third quarter, driven by very substantial gains in Japan and good gains in Europe, it said. But U.S. revenue was flat as strong gains in commercial business were offset by declines in the company's Federal government business. The company said that its networking services business, particularly in its work for the U.S. government sector, is being hurt by intense competitive pricing pressures and unexpected delays in the start-up of certain contracts. Unisys shares soared to a high of 49 11/16 in September after hitting a 52-week low of 20 15/16 last October. Twelve of the 13 analysts following the stock maintain either a "buy" or "strong buy" recommendation. Reuters contributed to this report.

To: flatsville who wrote (8933)	10/15/1999 1:18:00 AM
From: Runner	Respond to of 9818

" Gershwin stated things that would make technologically worse would be if the public hoarded, withdrew money from banks, and bought guns for their personal safety? " Good grief, why would guns in the hands of more people form technological difficulties? A paranoid might think they were planning something. Runner

To: flatsville who wrote (8933)	12/23/1999 8:11:00 AM
From: hdl	Read Replies (1) \| Respond to of 9818

I own foreign closed end funds-including many dealing with Asia , besides Japan, Latin America, and Africa. They are a very big % of my portfolio. I have considered the U.S. market very overvalued for a long time. Of course, it has become way more overvalued the last few years. Because of possible Y2K problems, I am thinking about selling although they trade at big discounts to their net asset value. Alternatively I could short webs or open end funds dealing with the countries I am long in to hedge.Which hedge is best? If I just sit tight do I have a risk of a big loss? Has the risk already been discounted? Have foreign countries done enough to take care of the Y2K problem? Did they have a major problem or are they less computerized and have newer computers and more non-computer backup so they don't have as much to worry about as the U.S. and Western Europe? A timely response would be appreciated.