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Technology Stocks : PCW - Pacific Century CyberWorks Limited -- Ignore unavailable to you. Want to Upgrade?

To: ms.smartest.person who wrote (118)	1/19/2001 9:05:44 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 2248

PCCW-HKT, Banks Sign US$4.7B 3-Tranche Loan Facility Updated: Friday, January 19, 2001 05:08 AM ET HONG KONG (Dow Jones)--Pacific Century CyberWorks-Hong Kong Telecom (PCW, news, msgs) and 17 banks signed Friday a three-tranche term loan facility worth US$4.7 billion, the banks said Friday. The facility consists of one US$1.5 billion three-year tranche carrying an interest rate of 85 basis point over the London Interbank Offered Rate, one US$2.3 billion five-year tranche carrying an interest rate of 115 basis points, and a US$900 million seven-year tranche carrying an interest rate of 145 basis points. The facility can also be made in Hong Kong dollars, in which case the interest margin will be 10 basis points higher than the U.S. dollar interest rates. The 17 senior lead arranging banks are: Bank of China (Q.BCH, news, msgs), Barclays Bank PLC (U.BCY, news, msgs), Chase Manhattan Bank (JPM, news, msgs), The Fuji Bank, Hang Seng Bank Ltd. (H.HSB, news, msgs), The Bank of East Asia Ltd. (H.BEA, news, msgs), Bayerische Landesbank Girozentrale (G.BLG, news, msgs), The Industrial and Commercial Bank of China (H.ICM, news, msgs), Standard Chartered Bank (U.STA, news, msgs), The Hongkong and Shanghai Banking Corporation Ltd. (HBC, news, msgs), Banca Commerciale Italiana S.p.A. (I.BAN, news, msgs), The Bank of Nova Scotia Asia Ltd. (T.BNS, news, msgs), Credit Agricole Indosuez (F.BAN, news, msgs), The Sakura Bank (J.MUB, news, msgs), The Sanwa Bank (J.SWB, news, msgs), The Industrial Bank of Japan (JD, news, msgs-IBJ), The Dai-Ichi Kangyo Bank (JD, news, msgs-DKB). CyberWorks will use the proceeds to refinance the bridge loan it had taken out last year to finance the acquisition of Cable & Wireless HKT Telephone Limited as well as for general working capital, the banks said. quicken.com

To: ms.smartest.person who wrote (118)	1/19/2001 9:11:25 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 2248

Investors' Uncertainty Takes Toll on CyberWorks Stock By Gren Manuel and H. Asher Bolande Staff Reporters of The Wall Street Journal Shares of Pacific Century CyberWorks Ltd. extended their slide to 21% over the past six trading days as investors continued to ignore the company's strengths. "I can't find any logic behind it ... Their fundamentals are still strong," says Chris Cheung, an analyst at WorldSec International Ltd. Analysts say good news, such as falling interest rates, bounces off the company, which is a merger of Richard Li's upstart Internet venture and Hong Kong's fixed-line telecommunications monopoly. Bad news, meanwhile, the company can't shake. Even negatives the market has had months to digest, such as the approach of Cable & Wireless PLC's option as of Feb. 17 to sell a 7.4% block of CyberWorks shares, can haul down the stock. CyberWorks shares dropped 5.5% Wednesday to 3.875 Hong Kong dollars (50 U.S. cents), on a day the overall Hong Kong market fell just 0.8%. CyberWorks' share price has fallen 75% since the Aug. 17 acquisition of Cable & Wireless HKT, Hong Kong's former telecom monopoly, against a 13% fall in the Hang Seng Index and a 35% fall in the Nasdaq Telecommunications Index. CyberWorks is now at 14% of its February peak of HK$28.50. When Mr. Li told anxious shareholders earlier this week that the situation was better than at many Internet companies, he echoed the view of many analysts who say the market has lost sight of the fact that CyberWorks is Hong Kong's dominant telecom firm, sending out millions of bills a month and getting paid, in hard cash. "The fact is that this is not a dot-com company with no cash flow behind it," says Michael Leary, an analyst at Lehman Brothers Asia, one of many who believe the company has been heavily oversold. But many believed CyberWorks was oversold at HK$10 in September, and even more thought so when it slipped below HK$5 last month. Most analysts believe HK$7 or HK$8 is a fair value for the stock. Hanging over the company is the Cable & Wireless option to sell CyberWorks' shares. The British telecom concern got the shares when it sold Cable & Wireless HKT to CyberWorks. When an earlier lockup on a bloc of CyberWorks shares expired, Cable & Wireless dumped a hefty amount of stock on the market, pulling the price from around HK$13 to nearer HK$11. The risk that it may do the same thing in February is a major factor in the stock's downward spiral, says Mr. Leary. Cable & Wireless spokesman Peter Eustace said the company hasn't decided what to do when the current lockup ends. The lockup issue is just one of the hurdles that keep appearing in the path of recovery for CyberWorks' share price. A few months ago the shares were sinking due to fears that a series of joint ventures with Telstra Corp. of Australia would unravel, and concerns over the cost of building Network of the World -- a cross between a Web site and a global TV station. Now that the Telstra deal is signed and the Network of the World investment has been trimmed back, some analysts fret over bank financing costs, about other shareholders needing to sell large blocs, and technical factors on the company's charts. Alan Hutcheson, head of research at Pacific Challenge Securities, says one problem is that the merged company has yet to present a balance sheet or other documents that would help analysts clarify its financial status. "People don't know the real state of affairs, and the company is not doing enough to help," he says. Other analysts dispute this, saying the basic telecom business that has emerged as CyberWorks' core is well understood. Citing growth in the fixed-line business the company controls, as well as in residential broadband Internet services, Mr. Cheung of WorldSec says: "They are going to be in a very dominant position in the next 12 to 36 months." Write to Gren Manuel at gren.manuel@awsj.com and H. Asher Bolande at hyam.bolande@awsj.com public.wsj.com

To: ms.smartest.person who wrote (118)	1/19/2001 9:30:19 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 2248

Asia & Pacific: It's a family affair 01 October 2000 Richard Li, the head of Pacific Century Cyber Works is seen by many as on a collision course with his father, Li Ka Shing, the head of Hutchison Whampoa. But it is an analysis that could be far too simplistic. By Charles Dodgson. The classics of most literary traditions contain an epic tale of a son's ambitions thwarted by a father's reluctance to relinquish power. The exception is Chinese literature with its Confucian streak of filial piety. Rather than gripping stories of sons upstaging their fathers, Chinese literature is full of fable-like examples of sons making extraordinary sacrifices for the sake of their father's well being. Perhaps this may help towards understanding the power dynamics that is being played out in the Hong Kong-based Li family at the moment. On the surface, Richard Li, the chief executive and chairman of Pacific Century Cyber Works is heading for a business fight with his father, Li Ka Shing, the chief executive and chairman of Hutchison Whampoa. Both men are building separate networks of alliances which will compete for dominance in Asia's telecom market. The younger Li has recently completed the takeover of Hongkong Telecom and sealed three joint ventures with Australia's Telstra to launch new ip-backbone and mobile companies across Asia. The ip-backbone is one of two high-growth areas he is concentrating on, the other being business to consumer sales, b2c. "If we are able to do good in either, we are confident that we can double the value of our company ... that is our aim," he says adding that he plans to connect every building in Asia to a broadband network. "We are technology agnostic, we will use whatever technology is available." Pacific Century's takeover of Hongkong Telecom may well be the first step to realise this ambition. Li immediately claimed the naming rights for the new company, which will be known as Pacific Century in Chinese. Li says that he named his flagship company deliberately with a clear vision of Asia's future in mind. It will be Asia's largest internet company and plans to operate eight business units via three operating sectors, telecoms services, global communication services and net enterprises. The ip-backbone infrastructure will incorporate broadband content centred around the Network of the World or Now portal. Li makes the point that he sees web content delivered as seamlessly as television. This is the rationale behind his company's idea of a linear television experience. Here the division between internet users and television viewers is seen as becoming completely blurred so that either type of 'viewer', can drill down into vertical portals, or vortals, for in-depth content, including video clips, graphics, animation, text and web links. Coinciding with the finalisation of the merger, Pacific Century Japan announced plans for a Tokyo studio to develop and edit content for Now Japan. The studio will be set up as part of a business alliance with Sony to edit and translate popular Japanese content into multiple languages for export via Now's global network. Sony will provide audio and visual hardware and technical support in the construction and development of the studio while additional Now studios are planned for New York and Hong Kong. Now content will also be generated in Australia as part of the agreement with Telstra. As the younger Li was talking up the potential of his new company in the new economy, his father was quietly consolidating his already substantial old economy business with an announcement of a 326 per cent profit jump over the last six months. This was slated mainly on Hutchison's forays into the European cellular market with the elder Li saying that he is still very much interested in European third generation licences but only at the right price. Li Ka Shing's Hutchison Whampoa was one of four Hong Kong property developers that won telecom service licences in the early 1990's when Hongkong Telecom's monopoly was removed. The spin-off company, Hutchison Telecom - with Richard Li as vice chairman - has easily been the most successful of the Asian phenomena in the nineties of property developers-cum-telcos. Speculation has been rife as to its future intentions in the region. The most compelling story is that Hutchison will make a joint bid with Japan's NTT to buy Cable & Wireless' stake in Australia's Optus - which says that it has heard nothing of the rumour other than a story in Hong Kong's Ming Pao newspaper. The Hong Kong press has had a long running love affair with the Li family and the prospect of the father and son taking sides in Australia's telecom sector appears to have been too good to miss, even though, so far, it appears unsubstantiated. Elsewhere in Asia there is more substance to rumours. During August, the elder Li confirmed that he wants to buy into Singapore Telecom, if the Singapore government lifts its cap of only 40 per cent foreign equity being allowed in the carrier. In Thailand, Hutchison has finalised its investment in troubled cdma operator, Tawan. Because Thailand easily has south-east Asia's highest per capita income, and highest level of education, the market has long been the bellweather market for the success, or otherwise, of business models. Tawan has had a conspicuous lack of success since it was launched in 1998, failing to increase its subscriber base past 8,000 in Bangkok. The Hutchison investment is expected to revitalise the operator which is now expected to renew its plan to become the first private Thailand-wide cellular network. Significantly, Hutchison also struck a deal to acquire a 49 per cent stake in Indian operator, Fascel, for $33 million. The deal makes Hutchison the largest private investor in Indian cellular operations with gsm networks in Mumbai (Bombay), New Delhi, Calcutta and Gujarat all operating under the Orange brand name. Meanwhile, Hutchison Telecom has launched Asia's first packet-based wap service in Hong Kong and upgraded the network. At first appearance, these Hutchison deals across Asia seem to achieve for Li the elder what Li the younger only talks about achieving. However, an alternative scenario has emerged because of the free fall in Pacific Century stock price over the last six months. Sydney-based Chinese literary critic, Teng Swee Liew, says that the Li family are using the classic battle tactic from the bible of east-Asian business, The Art of War. Teng paraphrases the Chinese, "you make a sound in the east while aiming to shoot in the west." Although a highly speculative proposition, Teng argues that Hutchison will bail out of Pacific Century and form a pan-Asian telecom company that absorbs both the substance of Hutchison and the potential of Pacific Century. "I am not going to say that this was always the Li family gameplan, but it is far more credible than competing for the dominant position. Every Chinese family knows the story of the first Tang emperor, whose name was coincidentally also Li. The three sons of the Tang dynasty Li helped make the father emperor." Richard Li says he aims to make his Cyberport project in Hong Kong the centre of the Chinese-speaking world for Chinese content generation. This claim was greeted sceptically when he first made it because of the general dearth of original and relevant Chinese content over the past fifty years. However, Li counters this criticism by saying that the rationale behind Cyberport is to foster an environment for creativity. It seems clear that he sees himself as a conduit for a Chinese renaissance. Conventional telecom analysts reject the view that the Li family gameplan is for the older Li to provide the solid infrastructure and for the younger Li to provide the inspiration for a flowering of Chinese content provision. However, given the remarkable success that the Li family has had in business, such as winning free broadcast rights in the centralised economies of China and India, it should not be dismissed so easily. totaltele.com

To: ms.smartest.person who wrote (118)	1/20/2001 6:56:52 AM
From: ms.smartest.person	Read Replies (1) \| Respond to of 2248

Tech Stock Analysis Updated: 22-Jan-01 General Commentary The old guard flexed its muscle last week, as tech sector was led higher by the likes of IBM (IBM), Microsoft (MSFT), Dell (DELL) and Cisco (CSCO)... Felt like the good old days... We also saw strong gains from some of the new comers as Net portal, optical networking and fuel cell stocks posted big gains... All in all the underlying tone of the sector continued to improve, as evidenced by the growing number of new highs and by the rising a/d line. With participation in the rally expanding, money managers being forced to move cash off the sidelines and back into techs (so as not to fall too far behind in performance), earnings numbers exceeding drastically reduced expectations, technicals improving and the Fed about to lower rates again when the month ends, there's no reason to bet against the sector at the moment. Sure it's a little overextended and it might pullback a bit if the Fed only reduces the funds rate by 25 rather than 50 basis points, but given the change in psychology, breadth and fundamentals, the big boys will use any dips as a (re)entry opportunity. This will limit the scope and duration of any pullbacks... Consequently, if you haven't already started putting money back into the sector, Briefing.com maintains you shouldn't sit around waiting for a big retreat - it isn't coming. Earnings will again dominate trading in the week ahead... Several of the key players scheduled to report results include Texas Instruments (TXN), Lucent (LU), Qwest (Q), Level 3 (LVLT), Tellabs (TLAB), Broadcom (BRCM), Compaq (CPQ), E*TRADE (EGRP), Corning (GLW), Exodus (EXDS), JDS Uniphase (JDSU), PMC-Sierra (PMCS), Qualcomm (QCOM) and Siebel Systems (SEBL)... For a full list of the firms scheduled to report earnings this week, please see our Tech Calendar and/or Earnings Calendar page(s). Robert Walberg Industry Briefs Computer Systems & Peripherals \| Networking \| Internet \| Semiconductor \| Semi Equipment \| Software \| Telecom Equip \| Telecom Services Computer Systems & Peripherals Industry Members Creative Tech (CREAF) 12 9/16 -3/16: After the close, reported Q2 earnings of $0.33 a share, $0.10 better than the First Call consensus of $0.23, vs year-ago earnings of $0.52; revenues fell 2.2% to $427.03 mln from a year-ago of $436.79 mln... CREAF +11/16 after hours. Dell Computer (DELL) 25 5/8 +1 7/16: CSFB upgraded to BUY from HOLD rating and price target of $32. Says secular industry trends now favoring Dell's business model; sees company maintaining positive desktop revenue growth through renewed share gain during difficult industry conditions. Believes Dell will be the biggest beneficiary of the Windows 2000 upgrade cycle. ..ABN AMRO upgraded to BUY from HOLD rating and price target of $35. EMC Corp (EMC) 77 5/16 +1 5/16: Goldman Sachs says more confident about numbers going into earnings report; says while it picked up a little mixed info from the U.S. side of the business in Dec. qtr, it was minor relative to other companies; notes that international data points have been positive all along. Emulex (EMLX) 101 1/8 +4: AG Edwards upgraded to BUY from ACCUMULATE rating and price target of $125 based on company's bullish outlook for 2001; Says EMLX is the "fifth horseman" of storage along with (EMC +1 5/16), (BRCD +2), (NTAP +3/16) and (VRTS +9/16); company recently boosted its guidance for sequential revenue growth in fibre channel revenues from 20-25% to 25-30%. Sun Microsystems (SUNW) 30 7/8 -4: UBS Warburg says "rocket ride is over," after company reported disappointing orders and revenues after the close on Thursday. Firm reduced its Q3 earnings view to $0.15 from $0.16 and Q4 outlook to $0.20 from $0.24... Sanford Bernstein downgraded to MARKET PERFORM from OUTPERFORM and SG Cowen downgraded to NEUTRAL from BUY... Salomon Smith Barney reiterated its NEUTRAL rating while J.P. Morgan and ABN Amro reiterated BUY ratings. Networking Industry Members Cisco Systems (CSCO) 40 3/8 -1 1/2: JP Morgan believes that Cisco will make its quarter, and while adding that CSCO might reduce revenue guidance, JPM notes that this is probably already in the stock. Internet Industry Members AOL Time Warner (AOL) 53.80 +4.03: Board of Directors approved a $5 bln stock buyback program and a $10 bln shelf registration. Mrgn Stnly Dn Wttr resumed STRONG BUY rating and price target of $75. Firm said that AOL/Time Warner is firm's best money making idea and noted that it is firm's top pick in both the Internet: New Media & eCommerce and Broadband & Entertainment sectors. Also, company named Ray Oglethorpe, previously President of AOL Technologies, to President of America Online. Ariba (ARBA) 38 1/4 +1 1/8: CIBC Wrld Mkts downgraded to BUY from STRONG BUY due to changing market dynamics and intense competition. Analyst said the center of the B2B universe is not transaction (procurement), it is the supply chain. This is not ARBA's strength and the ability to create the dominant B2B platform without providing the most important components is severely limited. Blue Martini (BLUE) 10 3/16 -1/2: Thomas Weisel downgraded to BUY from STRONG BUY and lowered price target to 20; while firm feels that downgrade will be temporary as fundamentals are intact, does see a change in enterprise spending patterns. Broadbase Sftwr (BBSW) 6 3/16 -1 5/16: First Union Sec downgraded to MKT PERFORM from STRONG BUY. Broadbase's DSO number grew significantly in the quarter from 90 days to 146 days. Broadbase lowered its guidance for fiscal 2001 citing macroeconomic uncertainty with its systems integration and channel partners. Analyst lowered 2001 estimates to $125.3 million revs and ($0.16) per share from $144.8 million from ($0.05)/share. Also 1Q01 estimates were lowered from $25.0 million and ($0.08) per share to $22.5 million and ($0.11) per share. Commerce One (CMRC) 28 1/32 +6 11/32: Bear Stearns' Ripple Effect noted that while revenue growth was impressive, it was costly in terms of sales and marketing and increased share count. Also noted concern about decrease in e-Procurement customer additions; firm reiterated BUY and $35 target, but recommended waiting for lower entry points if stock trades in high $20s near term. Pacific Growth Equities initiated coverage with a BUY rating and price target of $50 citing strong business momentum with solid Q4 results and sees a number of strategic initiatives moving forward. CIBC Wrld Mkts downgraded to BUY from STRONG BUY. Sees market dynamics changing and said the center of the B2B universe is not transactions, but the supply chain, which is not CMRC's strength; company's ability to create the dominant B2B platform without providing the most important components is severely limited. Critical Path (CPTH) 9 -11: Stock slammed 55% after a slew of downgrades. Merrill Lynch downgraded to NEUTRAL from BUY after company reported disappointing Q4 results; lowered 2001 revenue forecast to $250 mln from $305 mln and EPS view from $0.40 to a loss of $0.15. Goldman Sachs downgraded to MKT OUTPERFORM from RECOMMENDED LIST after the company reported disappointing Q4 results and reduced guidance for FY01. JP Morgan downgraded to LT BUY from BUY. Lowered 2001 revenue and EPS estimates to $255 mln from $306 and ($0.32) from $0.40, respectively. FAC/Eqts First Albany downgraded to NEUTRAL from BUY. Lowered EPS estimate to ($0.16) in Q1 and ($0.28) for FY01 from $0.03 and $0.39 respectively. Sees limited visibility going forward and says management's credibility has to be questioned after the company went out of its way to reaffirm guidance in mid-December. Drugstore.com (DSCM) 2 5/8 +5/32 : After the close, company announced the elimination of approximately 125 jobs through layoffs and expected attrition as well as reductions in planned marketing expenses. Company also announced David Rostov will resign as Vice President of Finance and CFO to pursue other opportunities; Bob Barton, currently Vice President and General Manager of Pharmacy Operations, will assume the role of Vice President of Finance and CFO. eBay (EBAY) 50 1/8 +3 1/4: W.R. Hambrecht upgraded to STRONG BUY from BUY rating and price target of $60. Said eBay is firm's favorite mid-cap idea for 2001 based on company's positive momentum, recently announced price increase and acquisition of the Internet Auction Company. Stock has moved 72% over last eight sessions. See Story Stock for additional details. Entrust Tech (ENTU) 20 5/16 +3 5/8: Heard some trading floor rumors that Checkpoint (CHKP) will acquire ENTU, but a source at one brokerage firm told us that they do not think it will happen, and that ENTU might just be trading up ahead of a conference starting Sunday with some of their partners. Inktomi (INKT) 15 3/8 -2 1/8: Friedman Billings downgraded to ACCUMULATE from BUY based on a lack of near-term visibility for the company's business and concern about near-term market demand for INKT products. Lowered FY01 revenue forecast to $297 mln from $464 mln and EPS estimate to a loss of $0.01 from a profit of $0.31.Also, Dain Rauscher Wessels downgraded provider of scalable software applications to NEUTRAL from BUY AGGRESSIVE. See Story Stock for additional details. Kana Comms (KANA) 7 7/8 -1 1/2: Wit SoundView downgraded to BUY from STRONG BUY based on the sudden resignation of KANA's CEO; feels compelled to pull back their rating on the company due to the increased potential of business execution risk over the next few quarters. Believes the immediate management changes may impact the execution of the business model in a tighter environment. Openwave (OPWV) 49 -7/16: Pacific Crest reiterated BUY citing company's dominant position in the market and the expected rapid growth in mobile communications; analyst sees stock performing best over the long-term. Prodigy Comms (PRGY) 5 +1: ISP inked strategic agreement with SBC Comm (SBC) making Prodigy the preferred wholesale ISP and portal for SBC. Under agreement, PRGY will receive monthly per subscriber fees to provide SBC a wholesale ISP service; SBC will provide a $110 mln line of credit to PRGY; SBC increased minimum subscriber commitment to Prodigy to approx. 3.75 mln DSL and 375,000 dial-up subscribers over the next 9 yrs. Veritas Software (VRTS) 99 1/4 +9/16: Sources at CSFB told Briefing.com that Veritas has signed a multi-year, $60 mln deal with AOL (AOL); we have no confirmation of this deal. Vignette (VIGN) 7 19/32 -7/32: USB Piper Jaffray downgraded to NEUTRAL from STRONG BUY based on reduced visibility and profitability going forward. Semiconductor Industry Members Altera (ALTR) 29 13/16 -2 7/16: ABN AMRO downgraded to ADD from BUY. Says trough is deeper and recovery slower than expected; with regard to the semis, feels investors should focus on pure high-performace analog IC stocks such as Linear Technology (LLTC 62 1/2 -2 9/16) and Maxim Integrated (MXIM 68 3/4 -5/16)... Lehman lowered 2001 earnings view to $0.95 from $1.15 following chip maker's report of disappointing Q4 results. Conexant (CNXT) 17 3/16 -1 9/16: Merrill Lynch, Robertson Stephens, and SG Cowen all downgraded CNXT in response to company issuing lowered guidance for Q1 after Thursday's close and announcing the delay of infrastructure business IPO. Lattice Semi (LSCC) 24 3/8 -3/8: Late Thursday night, company reported Q4 earnings of $0.34 a share, in line with the First Call consensus of $0.34, vs year-ago earnings of $0.21; revenues rose 31.1% to $150.79 mln from a year-ago of $114.99 mln. Marvell Tech (MRVL) 28 -1/4: Company and Galileo Technology (GALT 18 5/8 -3/16) announced shareholder approval of their pending merger. Micron Tech (MU) 46 7/16 +2: Prudential Securities upgraded to STRONG BUY from ACCUMULATE and raised price target to $75 from $38; firm says it sees some evidence of price stabilization with increases seen for branded DRAMs. While this may not lead to a sustainable price advance, it does suggest that a bottom is in place. Transmeta (TMTA) 24 11/16 +1 5/8: Morgan Stanley Dean Witter said TMTA's EPS shortfall was driven entirely by a lower sharecount, which resulted in a higher loss per share; the company reported a Q4 EPS operating loss of ($0.20), greater than firm's estimate of ($0.15) and the consensus of ($0.16); had the sharecount been 117 mln based on management's previous guidance vs. the 86.7 mln reported, the loss per share would have matched firm's estimate; firm maintained its OUTPERFORM rating. Semi Equipment Industry Members Credence Systems (CMOS) 26 5/8 -1/8: ABN AMRO downgraded to ADD from BUY after the company forecasted a 40% sequential drop in sales for the January quarter; firm maintained a positive outlook on the stock's performance long-term, but expects increased volatility over the next 2-3 months. Sees company remaining profitable through this period and believes investors will be willing to pay a premium P/E on depressed earnings. Software Industry Members BARRA, Inc. (BARZ) 50 1/16 -9 1/4: JP Morgan blames weakness in stock to profit taking following major advance in December. Firm feels that investors should use pullback as an opportunity to purchase the stock. BMC Software (BMCS) 32 1/8 +1 13/16: Deutsche Banc Alex.Brown upgraded to BUY from MKT PERFORM. Cited rapid earning gains expected in coming quarters, increased visibility from longer-term contracts, strong cash flow and a solid balance sheet. Take-Two (TTWO) 12 1/2 +11/16: Analysts bullish on interactive software company amid buzz created by Sony PlayStation 2 and Microsoft Xbox, reports Business Week. One analyst calls TTWO a phenomenal growth story. Wedbush Morgan's Miguel Inbarren forecasts earnings to rise 59% to $1.40 a share in 2001. TeleTech Hldngs (TTEC) 15 9/16 -3 1/4: Raymond James downgraded to MKT PERFORM from BUY after the company issued a warning after the close on Thursday. Telecom Equip Industry Members ADC Telecom (ADCT) 15 9/16 -5 3/4: Before the open, ADCT said it sees Jan. qtr earnings of $0.05-$0.07 vs $0.12 First Call mean. Company revised annual growth assumptions for sales and earnings to 15% from previous guidance of 25-30%. ADCT attributes weakness to lower spending by communications service providers... Wachovia Securities, Stephens Inc., Josephthal & Co., ABN Amro, and SG Cowen all downgraded ADCT. JDS Uniphase (JDSU) 60 13/16 +1/2: Salomon Smith Barney believes that Nortel's (NT 40 +3 5/16) inventory levels are a flag to the 2H01 outlook for JDSU; in the December quarter NT's inventory levels jumped and the use of internally manufactured optical components accelerated; believes NT built inventory levels that exceeded Q4 needs and will work to bring these levels down; firm says they are concerned about a material dip in demand for optical components that could negatively impact the outlook for JDSU. Nokia (NOK) 39 1/8 -1 7/8: Cellphone maker said it had won a GSM mobile network expansion deal from Chinese Shanxi Mobile Communication Corporation, no financial details were provided... Separately, Morgan Stanley Dean Witter downgraded both Nokia and Ericsson (ERICY 12 7/16 -3/16) to NEUTRAL from OUTPERFORM. Sonus Networks (SONS) 40 15/16 +3 9/16: Prudential upgraded to STRONG BUY from ACCUMULATE following company's report of better-than-expected quarterly results; firm increasied 2001 revenue est. to $195 mln from $158 mln. Telecom Services Industry Members British Telecom (BTY) 106 15/16 -1 7/16: UK's dominant phone company said it was confident it would not need to cut its dividend and did not expect to see the conditions its group treasurer said might bring about a lower payout. Copyright © 2000 Briefing.com, Inc. All rights reserved. Used with permission of briefing.com

To: ms.smartest.person who wrote (118)	1/30/2001 8:57:29 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 2248

Evening Wrap: Flash! HSBC Not the Market Mover! Li Shares Lead Plummet Jan 30, 2001 - 19:56:43 HKT QuamResearch The Li clan was responsible for about half of the HSI's 206.75 decline today which left the index under the 16k level at 15,893.07, while The Bank -- often the determinant in the market's final direction -- contributed just 18 points to the fall. Market turnover was HK$9.79 billion. In fact, the HSI moved like a sidewinder for much of the day, but after January futures expired in the morning session, the sell orders jumped in like a gaggle of mongooses in a snake pit, leaving the second trading day of the new lunar year on negative footing. Influences included the Greenspan effect as the Fed chairman is due to say something about rates following today and tomorrow's meeting of the Federal Open Market Committee. Property news was also somewhat abundant, while technology plays were hit by a combination of general worries and news that the CEO of U.S. giant Cisco said that customers are spending less on its equipment with the result being a more "challenging" quarter than expected. All sectors fell except utilities as punters began to fear that the upcoming rate cut -- assuming there is one -- will be less aggressive than desired. The result of such concerns is a rotation of funds out of interest rate sensitive counters and into defensive plays. The sub-index rose 1.9% with HK Gas (3) the biggest riser at 30 cents or 2.8% to $11.15. CLP (2) gained 40 cents to $36. Li associate HK Electric (6) gained 2%, 55 cents, to $28.20 and offset the decliners in the empire. Interest rates and Mr. Greenspan's upcoming announcement frame the critical question on the lips of many an English-impaired fund manager: "25 or 50 BPs?" Simply, will it be a quarter percent or half percent cut in interest rates? Despite the recent surprise cut a few weeks back coming in at half a percent, truly quick and drastic action for the normally staid Fed, the U.S. economy seems to be emanating more warning signals, and the stock market is thus clamoring for more of that old-time religion. If cuts come in at just a quarter percent, the market will likely react negatively, whereas a half point cut will likely be just enough to stave off a pessimistic panic. It comes down to this: the market wants more, but Greenspan is unpredictable enough to potentially give less. His concern is not the stock market but the economy, except where the stock market is a barometer of broader business concerns. As a result, local banks dropped back slightly, though the effect was minimal, as punters tried to minimize the potential effects of negative news while still maintaining positions. HSBC (5) gave up just 50 cents to close at $120.50, Hang Seng (11) gave back a dollar to $102, BEA (23) fell 35 cents to $21.25, and Dao Heng (223) fell 70 cents to $42.70. HSBC's turnover was strong at $1.4 billion, suggesting that there wasn't much interest in a mass sell-off but neither were there punters willing to pull it higher in the short term. Properties experienced more of a sell-off as the above-mentioned interest rate question combined with news of government housing initiatives and punter consensus over an over-bought stock segment. The result was a 2.3% decline in the sub-index. The property counter with the largest influence today was SHK (16), which dropped $3, 3.7%, to $78.25. SHK contributed 28 points to the HSI decline. Second was Li Ka-Shing's flagship Cheung Kong (1), which dropped back $2 or 1.95% to $100.50, costing the HSI 18 points. Henderson (12) fell 90 cents, 2.2%, to $40.40. New World (17), the speculative rebel chip, rose 15 cents to $12.15, the only property counter to rise and surely the one with the most interest in the rate equation considering its debt load. Three tidbits of property news hit the market today, each sending a conflicting signal. For one, it is rumored that Citibank is planning to sell the entire tenth floor of Citibank Tower to take advantage of a recent surge in local office prices and to raise $1.7 billion for business development. Quam news also reported that the managing director of UNI-PAC Property Consultants last month said he expects Grade A commercial property rents to rise 25% to 30% this year. Thus a question for property worshippers is whether Citibank's rumored move is premature or a reflection of the American bank's reservations over the local property market. A second piece, more unambiguous, is that Cheung Kong plans to increase the prices of some of its unsold apartments by 3% to 8% citing market readiness for a modest rebound. CK also reiterated that it will release 4,000 to 5,000 units for sale this year depending on the market. The company already sold 25 apartments during the Chinese New Year holiday and figures that the expected cut in interest rates will further boost the market. That may suggest that the company is reasonably but not over-optimistic, and that may be a good cue for investors to follow. The final piece was on the negative side to developers and property punters though more of a positive event for the less well-off in the SAR: the Housing Authority approved a plan to build 40,000 government-owned flats for the public. Of these, 15,000 to 18,000 will be sold under the Home Ownership Scheme in 2001-2002. The HA will also provide low-interest loans to potential homebuyers. However, the HA also plans to lower the monthly household income limit on HOS buyers to around HK$25,000 from the current HK$31,000. This move is probably somewhat conciliatory for the big developers as it will of course exclude a greater number from being eligible for the lower cost HOS units, thus providing a larger pool of bidders to boost the private sector. Finally, the techs declined again. Li-related plays Hutch (13) and PCCW (8) both dropped and together accounted for 84 points of the decline. Hutch dropped $3.50 or 3.4% to $100 while PCCW fell 30 cents or 6.3% to $4.475 -- do we hear the siren call of three dollars with the debt-laden company destined to dash itself upon the rocks of declining cash flow and poor business prospects? We don't know, but if there is money to be invested, we remain convinced there are better prospects. The non-HSI tom.com (8001) also declined, 25 cents or 9.2% to $2.475 after a 6.8% fall yesterday. That boat's hull may also be close to breaking up. Also hit was China Mobile (941), losing 70 cents to $49.20, and Unicom (762), down 25 cents to $13.30. Tomorrow is Tony Measor's last day. Tony has made a positive impact on many people and is one who exemplifies integrity. Be sure to read Tony's closing commentary tomorrow, and join us in wishing him the very best. quamnet.com

To: ms.smartest.person who wrote (118)	2/15/2001 5:25:58 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 2248

ILink Cuts Size of Share Offer Amid Technology Stock Weakness By Cathy Chan Hong Kong, Feb. 15 (Bloomberg) -- ILink.net Holdings Ltd., a data services venture that is 41 percent-controlled by Pacific Century CyberWorks Ltd., cut the size of its initial share sale by about a fifth amid diminished investor enthusiasm for technology- related stocks. The Hong Kong-based data center expects to raise up to $18 million from the sale, down from the $23 million Chief Executive Billy Tam estimated in December. ``The market atmosphere last year was crazy,'' Tam said. ``We're back to a more rational market.'' ILink plans to issue 110 million new shares, representing about 15 percent of the company, to institutional investors at between HK$1.10 and HK$1.28, according to bankers involved in the share sale. The top price values the company at about HK$938.7 million. CyberWorks announced plans to sell off the unit last October. The technology-oriented Growth Enterprise Market, where the shares are to trade, has dropped 13 percent since mid-October. That could it make it tough to sell the issue. ``It's slightly more expensive than market expectations,'' said Joseph Ho, Asian Internet analyst at Dresdner RCM Global Investors Asia Ltd. ``The company needs to show there is high take- up rate at existing (data) centers and continuous strong demand for services.'' ILink said it would use the funds to establish four data centers in the Chinese cities of Shenzhen and Guangzhou, and in Singapore and Taiwan. Its expansion in China may be challenged by rival Sunevision Holdings Ltd., which also plans to spend HK$400 million on new data centers in China and Japan this year. Oversupply of data services in Hong Kong may concern potential investors, Ho said. Sunevision, backed by property giant Sun Hung Kai Properties Ltd., has about 500,000 square feet of space in Hong Kong. Henderson Cyber Ltd., the Internet arm of Henderson Land Development Co., is expected to complete more than 200,000 square feet of Internet service floor area this year, Ho said. ILink will start presentations to institutional investors at the end of the month. The final price of the shares will be fixed on Feb. 28, and trading is expected to begin March 9, bankers said. BNP Paribas Peregrine Securities Ltd. and e2-Capital Securities Holdings Ltd. are managing the offer. CU Securities Ltd. will also help underwrite the offer. CyberWorks, Richard Li's Internet and telecommunication venture, reduced its stake in iLink to 41 percent from 80 percent July last year. Dell Computer Corp. holds 6 percent of iLink, and Henderson Investment Ltd. owns 11.5 percent. quote.bloomberg.com

To: ms.smartest.person who wrote (118)	2/19/2001 2:27:48 AM
From: ms.smartest.person	Read Replies (1) \| Respond to of 2248

Asian Stocks Decline; Fujitsu, TSMC, Samsung Electronics Lead By Tomoko Yamazaki Tokyo, Feb. 19 (Bloomberg) -- Asian stocks fell, led by Fujitsu Ltd., Samsung Electronics and other computer-related companies after industry leaders such as Dell Computer Corp. said earnings will disappoint investors. Japan's Nikkei 225 stock average fell 0.4 percent, paced by Furukawa Electric Co. after Nortel Networks Corp. said it will post a loss this quarter. Taiwan Semiconductor Manufacturing Co. dragged the TWSE Index down 1.8 percent, while Hong Kong's Hang Seng Index fell 1.1 percent, led by China Mobile (Hong Kong) Ltd. Korea's Kospi index shed 1.7 percent while Venture Manufacturing Ltd. sent Singapore's Straits Times index down 1.1 percent. ``Investors are still trying to factor in earnings forecast cuts into share prices,'' said Toshiyuki Fukushima, who helps manage $2.2 billion at Sumisei Global Investment Trust Management Co. in Tokyo. Also, ``it's just so hard to find any reasons to start buying stocks right now as there is still uncertainty about Japanese companies' earnings.'' The Nasdaq Composite Index, comprised of some of the biggest computer-related stocks in the U.S., tumbled 5 percent on Friday. Dell shed 6 percent after the biggest U.S. personal computer maker said on Thursday sales and profit this quarter will miss estimates because of stagnant demand. Nortel Networks, the world's biggest maker of fiber-optic equipment, plunged 33 percent after saying on Thursday it expects a loss this quarter because of slowing U.S. sales. Though Dell and Nortel made their announcements two trading days ago, investors in Asia tend to wait for the U.S. market's reaction and take their lead from the Nasdaq's performance. Japan Japan's Nikkei 225 stock average dropped 55.90 to 13,119.59, after earlier dipping to its lowest day since Oct. 15, 1998. That's about 250 points above a 15-year closing low. The broader Topix index declined 0.8 percent to 1237.80. Fujitsu, Japan's largest computer maker, fell 1.7 percent to 1713 yen, after Dell warned of slowing sales. Furukawa Electric, Japan's second-largest maker of cables and fiber-optic parts, dropped 5.3 percent to 1809 yen, extending its four-day, 18 percent drop, after U.S. affiliate JDS Uniphase Corp. plunged 21 percent, tracking the drop in rival Nortel. Furukawa is the largest shareholder of JDS Uniphase, and also sells its products to Nortel. Sumitomo Electric Industries Ltd., a fiber-optic parts maker, declined 6.5 percent to 1440 yen, following Nortel's decline. The Topix nonferrous metal sub-index, which tracks the performances of cable and wire makers such as Furukawa and Sumitomo Electric, was the biggest decliner on the broader Topix, losing 6 percent. ``The downward revisions in the computer-related industry were more than we thought, and looking at the way the Nasdaq fell, it shows how all the bad news still haven't been folded in the share prices,'' said Shinichiro Takaya, a general manager at Mizuho Investors Securities Co.'s equity sales department. Taiwan Taiwan's TWSE Index slipped 108.37 to 5937.30. TSMC, which this month said first-quarter profit will fall as much as 28 percent from the preceding quarter, fell 2 percent to NT$96. Advanced Semiconductor Engineering Inc. fell 5.7 percent to NT$34.8. Concerns about the slowing domestic economy also dragged stocks lower. The government last week cut its full-year growth forecast to 5.3 percent from 6 percent as electronics exports lost steam and political infighting sapped investor confidence and domestic consumption. ``I will raise cash around here but buy when the market dips,'' said Shih Mei, who manages $16 million in Taiwanese stocks at National Investment Trust Ltd. ``In the next quarter there won't be very good news to speak of in terms of earnings.'' Chunghwa Telecom Ltd. fell 3.8 percent to NT$75.5. The government is considering selling more Chunghwa shares to local investors to raise cash to cover a budget shortfall after it aborted an attempt to sell the shares overseas last month. Hong Kong Hong Kong's Hang Seng Index fell 82.47 to 15,547.84, extending its 1.5 percent loss in the past two days. The Hang Seng Information Technology Index fell 2.6 percent after the Nasdaq posted its biggest loss in six weeks. ``As long as earnings visibility remains low, it's difficult to have a rally in the Nasdaq'' and this doesn't help counterparts here, said Husan Pai, who helps invest $3 billion in Asia ex-Japan at Indocam Hong Kong Ltd.,. The Nasdaq gained 5.8 percent this year. China Mobile, China's biggest cellular operator, fell 2.8 percent to HK$45.20. Legend Holdings Ltd., China's biggest computer maker, fell 0.8 percent to HK$6.50. Developers rose after the government said it will make it easier for them to sell apartments. Investors also hope a land auction later today will reflect expectations of higher property prices. This is the first auction since the government said last week it will halve the amount of land it will release for residential development for the next fiscal year. Sun Hung Kai Properties Ltd., Hong Kong's second-largest developer, rose 2.8 percent to HK$83.25. Cheung Kong (Holdings) Ltd., Hong Kong's biggest real-estate developer, rose 0.8 percent to HK$98.25. Korea, Singapore Korea's Kospi lost 8.25 to 596.67. Samsung Electronics, the world's biggest computer memory chipmaker and a supplier to U.S. computer makers, lost 1.4 percent to 209,500 won. Trigem Computer Inc., which makes the third best-selling personal computer in the U.S., fell 0.8 percent to 7050 won. ``I was expecting the Kospi to fall at least 3 percent after Nasdaq lost 5 percent,'' said Seo Jung Ho, who manages about $960 million in assets at Daehan Investment Trust Management Co. in Seoul. ``Profit warnings are fueling investors' concern that U.S. economy may face a hard-landing.'' Singapore's Straits Times index lost 1.1 percent to 1949.59. Venture, the city-state's largest electronics manufacturer by market value, shed 6.6 percent to S$15.60, while Omni Industries Ltd., which makes plastic parts for Dell, shed 3.1 percent to S$3.08. In a statement last week, Singapore's Trade Development Board said demand for global electronics was ``sluggish,'' compared to domestic exports of non-electronics. January shipments of electronics rose 1.9 percent to S$5.3 billion ($3 billion) from a year earlier. ``Fears of disappointment in earnings because of the poor U.S. economy and hopes of interest cuts will keep the markets in a volatile situation,'' said Teng Ngiek Lian, chief investment officer at Value Partners Ltd. in Singapore, who helps manage $57 million in Asia excluding Japan. quote.bloomberg.com