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.

Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked -- Ignore unavailable to you. Want to Upgrade?

To: Tim Luke who wrote (81737)	12/22/1999 12:56:00 PM
From: Bill on the Hill	Respond to of 90042

Do not know if this was posted. Just some light reading about CS. cbs.marketwatch.com 3Com leads hardware stocks lower Slower sales last quarter send stock down 15% By Mike Tarsala, CBS MarketWatch Last Update: 11:32 AM ET Dec 22, 1999 Silicon Stocks Join the Discussion NEW YORK (CBS.MW) -- Hardware stocks edged lower in early Wednesday trading, dragged down by plummeting shares of networking gear marker 3Com and sinking Unisys stock. Today on CBS MarketWatch Baby Bell wins key approval MapQuest shares fall after merger with AOL Bell Atlantic to go long in New York Hardware sector plagued by 3Com decline StockWatch: Undervalued incubators More top stories... CBS MarketWatch Columns Updated: 12/22/99 11:45:52 AM ET Shares of 3Com plunged 8 to 45 after it reported second-quarter sales slid 4 percent to $1.48 billion. Additionally, 3Com said Chief Financial Officer Chris Paisley will retire next summer, ending 15 years with the company. "We feel that there are a lot of issues about them," said Peter Andrew, an analyst with A.G Edwards & Sons Inc. "They're going to be spinning off Palm -- a major driver of growth. If you take Palm out, revenue's down 12 percent year-over-year. The core business is no-growth; that's what people have to look at." Indeed, revenue from 3Com's Palm hand-held unit, which is to be spun off next year, jumped 50 percent to $260.9 million. 3Com is losing market share to Cisco (CSCO: news, msgs), Nortel (NT: news, msgs) and Cabletron (CS: news, msgs) in high-margin networking products used by large businesses. Andrew blames the problem on missed business execution and a lack of focus. The company's lower-margin personal connectivity products saved what could have been a disastrous quarter, he said. It would be better for 3Com to focus on either personal networking products or high-end business products, Andrew said. "They have two different sales models, two different sales channels, yet they believe they can do it with one approach," Andrew said. "You're seeing proof that it doesn't work." Unisys (UIS: news, msgs) shares shed 1 1/4, or 4 percent, to 31 1/8 after Eastman Kodak Co. (EK: news, msgs) hired away the Unisys chief financial officer, Robert Brust for Kodak's CFO spot. Brust is expected to report to his new post Jan 3. Brust succeeds Jesse J. Greene, Kodak's acting CFO. Unisys named Janet Brutschea Haugen its acting financial chief. Kodak rose 2 7/8, or 6 percent, to 60 1/4. The Goldman Sachs Computer Hardware Index ($GHA: news, msgs) fell 1.3 percent. Shares of IBM (IBM: news, msgs) slipped 15/16 to 109 3/16. Hewlett-Packard (HWP: news, msgs) dropped 2 1/4 to 106 1/2. Sun Microsystems (SUNW: news, msgs) edged lower by 5/8 to 74 1/4. Dell Computer (DELL: news, msgs) fell 1 to 48 3/4. Compaq Computer (CPQ: news, msgs) dropped 5/16 to 27 5/8. Apple Computer (AAPL: news, msgs) was one of few computer makers bucking the downward trend in the first half-hour of trading, but later slipped 1/2 to 102. The company announced Wednesday that it's now distributing Final Cut Pro 1.2, the latest version of its video editing and effects software. The new version is optimized for the Power MacG4 computer and Apple's Mac OS 9 operating system.