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Technology Stocks : Alcatel (ALA) and France -- Ignore unavailable to you. Want to Upgrade?

To: zbyslaw owczarczyk who wrote (2479)	9/28/2000 12:27:50 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 3891

Alcatel (SBF:CGEP) tumbles on sector earnings fears Reuters, 09/28/2000 06:40 PARIS, Sept 28 (Reuters) - Shares in French telecoms equipment maker Alcatel (SBF:CGEP) tumbled more than five percent on Thursday, rattled by rumours of possible profit warnings from U.S. peer Motorola (NYSE:MOT) and other European rivals. At 1021 GMT, the stock was down 5.67 percent at 75.95 euros, while the blue-chip index CAC-40 was down 0.81 percent at 6,268.47 points. On Wednesday, rising speculation that U.S. mobile phone maker Motorola may miss its third-quarter targets unnerved the already fragile sector. "It's no surprise, the American tech market has not yet hit bottom and I think the fear is that Alcatel will always be very vulnerable to any downturn there (the U.S. market)," a trader said of a possible warning from Motorola. Others added that earnings warnings from other European mobile phone makers could also come into the fray, pointing to Finland's Nokia (HELS:NOK1V) as a possible victim. "We are expecting bad news from Europe too. Nokia is under attack and who knows but it might be more than just the Motorola scares," a trader said. 1072, paris.newsroom@reuters.com)) Copyright 2000, Reuters News Service

To: zbyslaw owczarczyk who wrote (2479)	9/28/2000 1:41:39 PM
From: Steve Fancy	Respond to of 3891

CORRECTED - Earnings jitters shake Euro telco stocks Reuters, 09/28/2000 13:00 In LONDON story headlined Earnings jitters shake Euro telco stocks, please read in second paragraph ...concerns that losses in the handset division of Ericsson (SWED:LME.B) could be greater than expected... instead of...concerns that losses in the handset division of Ericsson (SWED:LME.B) and Nokia could be greater than expected. (corrects quote to remove erroneous reference to Nokia handset division). A corrected story follows. LONDON, Sept 28 (Reuters) - European telecom equipment stocks dropped sharply on Thursday as unfounded rumours that Goldman Sachs was downgrading Nokia (HELS:NOK1V) prompted a wave of selling spurred by third-quarter earnings jitters. Goldman said the speculation was untrue, but noted that in a recent research brief it had underlined concerns that losses in the handset divisions of Ericsson (SWED:LME.B) could be greater than expected. At 1056 GMT shares in Nokia were down 4.3 percent while peer Ericsson (SWED:LME.B) fell 2.8 percent and France's Alcatel (SBF:CGEP) skidded 5.4 percent. Britain's Marconi (ISEL:MNI) topped blue-chip decliners with a loss of 8.5 percent and the DJ Stoxx technology index <.SX8P> dropped 3.5 percent. "You are going to get a lot of these rumours on the bearish side ahead of the results season... everyone is very nervous," said the head of sales trading at a London-based brokerage. "This is a sector thing. When you are on these high ratings you are going to get a lot of volatility," one industry observer said. Aside from speculation about a possible profit warning from Motorola Inc (NYSE:MOT), traders specifically cited concerns over pricing pressures on GPRS (General Packet Radio System) at Ericsson. GPRS technology will give European mobile phone customers the first taste of Internet services over cellphone handsets as the industry moves towards high-speed third generation mobile services. In a note dated September 25, Goldman said "Ericsson's handset division should again see significant losses in the third quarter. The company has been guiding towards 3-4 billion crowns in losses in handsets in Q3 (we are at 3.3 billion crowns) but we believe there is an outside chance of losses approaching five billion crowns." "People are worried about capital expenditure from big customers will be lower than expected because of the higher than expected spending on third generation mobile licences," said one analyst. Marconi's dramatic fall was exaggerated by a series of yo-yo sessions of late, during which the stock has gyrated from top European blue-chip leader to decliner. team, + 44 020 7542 8434, fax + 44 020 7542 3722, email sophie.walker@reuters.com)) Copyright 2000, Reuters News Service

To: zbyslaw owczarczyk who wrote (2479)	9/28/2000 1:46:30 PM
From: Steve Fancy	Respond to of 3891

Alcatel says has not cut sales forecast for optics Reuters, 09/28/2000 13:10 PARIS, Sept 28 (Reuters) - French telecoms equipment maker Alcatel (SBF:CGEP) said on Thursday it had not lowered its 2000 sales forecasts for its optics division and reiterated a figure of "at least 6.5 billion euros." "We have not cut our forecast," an Alcatel spokeswoman said, reacting to an analyst downgrade on Alcatel stock which was based on the company having recently given a sales figure of 6.5 billion euros ($5.76 billion) versus a previous estimate of seven billion. "We had given a rounded figure of around seven billion and today we confirm that sales from our optics division will be at least 6.5 billion euros. Between 'at least 6.5' and 'around seven' there isn't much difference," the spokeswoman said. ABN Amro said earlier on Thursday it was downgrading Alcatel shares to "undervalued" from "buy" amid general sector gloom and in particular after it interpreted the new sales forecast as a downwards revision. ABN Amro also reduced its sum-of-parts valuation for Alcatel shares to 87 euros from 96 previously. Shares in Alcatel, the most traded on the Paris bourse on Thursday, closed down 6.16 percent at 75.35 euros, battered by rumours of possible profit warnings from U.S. peer Motorola (NYSE:MOT) and other European rivals. 4236 1072, email paris.newsroom@reuters.com)) ($1=1.129 Euro) Copyright 2000, Reuters News Service

To: zbyslaw owczarczyk who wrote (2479)	9/28/2000 2:45:25 PM
From: Steve Fancy	Read Replies (3) \| Respond to of 3891

For a guy like Serge who strikes me as having an excellent understanding on street relations after the fall '98 fiasco, this statement form ALA IR surprises me... Between 'at least 6.5' and 'around seven' there isn't much difference," the spokeswoman said. ...as the street has been focusing on revenue numbers and 6.5 seems quite different than 7 to me. I am not worried about it, but if the stock doesn't stabilize in the mid seventies over the next few days I would expect an upside surprise type announcement or it might worry me a little as he has not been shy about making his companies story known when necessary in the past. Anyway, no biggie, just an observation. Should see a nice overseas rally tonight if we close anywhere close to these levels. regards, sf