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Technology Stocks : ADC Telecommunications -- Ignore unavailable to you. Want to Upgrade?

To: DlphcOracl who wrote (1241)	10/28/2000 12:48:01 PM
From: Mao II	Read Replies (1) \| Respond to of 1944

Thread: From DJ Newswire October 27, 2000 Dow Jones Newswires ADC Telecom Hits 9-Month Low On Capital Spending Jitters Dow Jones Newswires (Corrected 04:38 PM) By Janet Whitman Of DOW JONES NEWSWIRES NEW YORK -- Shares of ADC Telecommunications Inc. (ADCT) slid to a nine-month low in heavy volume Friday amid jitters that the telecom equipment company may be experiencing some softness in demand for its products, analysts said. "Given the weakness in the sector, people believe that ADC could be light on their numbers," said ABN AMRO Inc. analyst Kenneth Leon. "We don't believe this is the case. We're definitely confident for the November quarter." Fears that telecom service providers will spend less on equipment next year contributed to the stock's weakness, analysts said. "There's nothing that will take the sector down more than talk of a slowdown in capital spending," said George Hunt, an analyst with Wachovia Securities Inc. It's been a tough couple of weeks for the telecom equipment sector, with companies such AT&T Corp. (T), BellSouth Corp. (BLS), Williams Communications Group Inc. (WCG) and WorldCom Inc. (WCOM) all announcing they intend to spend less capital next year. Merrill Lynch & Co. forecast in a Friday research note that the rate of capital spending growth by large-cap telecom service providers will decline by 5% next year, compared with a 26% growth rate this year. However, Hunt said that concerns about capital spending are overblown. "I don't think capital spending is going to be down as much as people think," he said. ADC Telecom slid sharply earlier in the day, reaching a nine-month low of $15.56 a share. The stock recouped some of its losses to close at $17.94, down 4.7%, or 88 cents. Volume was heavy, with 35.1 million shares changing hands, up from average daily volume of 13.4 million. ADC Telecom could not be reached for comment. (Pulled from Yahoo ADCT board. M2)