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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Dave Gore who wrote (117615)	11/30/2000 11:41:51 AM
From: Lane Hall-Witt	Respond to of 120523

Dave -- INTC: Obviously, the Street is highly motivated to keep this one alive. For one thing, the professionals own tons of INTC, somewhere in the neighborhood of 3.5 billion shares of it. And they're sellers right now -- unloaded a net of 164.5 million shares last quarter, according to the Yahoo! information on institutional activity -- so they're trying to create strength to sell into. More broadly, it's also the case that INTC and CSCO are probably the two most important bellwethers in the tech sector. It's crucial to keep INTC strong, if the Street wants to keep the tech game going. We shouldn't lose sight of the fact that the technology game has generated immense investment banking fees, trading profits, employment, etc., etc., over the past several years. In some sense, all of this rides on the fortunes of stocks such as INTC and CSCO (especially since MSFT, DELL, and WCOM are fallen angels nowadays). The Street's going to face a serious challenge in a few weeks, because it's hard to see how INTC could possibly deliver on earnings this quarter. Demand is contracting dramatically, and the delay of AMD's next-generation chip has led AMD to start a price war as it attempts to maintain market share. A research report the other day from Ashok Kumar said there might be upside to INTC's revenues this quarter, but it's hard to reconcile that conclusion with broader trends that appear to be hurting the PC and semi sectors.