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 : Sharck Soup -- Ignore unavailable to you. Want to Upgrade?

To: GREENLAW4-7 who wrote (10254)	2/27/2001 11:12:55 AM
From: CAPTAIN MORGAN	Read Replies (1) \| Respond to of 37746

Too Soon to Buy Technology, Goldman Says; Outlook Cut New York, Feb. 27 (Bloomberg) -- With slower spending cutting into U.S. technology companies' profits, investors shouldn't jump in to buy the stocks yet, according to Rick Sherlund and other analysts at Goldman, Sachs & Co. The firm cut its sales and profit forecasts on computer- hardware companies including EMC Corp., Hewlett-Packard Co., International Business Machines Corp. Sherlund and his colleagues also lowered revenue or profit estimates at 12 software companies including Microsoft Corp. and Ariba Inc. ``Tech stocks may be closer to a bottom than not but are probably still too early to be bought heavily,'' Sherlund and colleague Laura Conigliaro, who follows equipment companies, wrote in a report to clients. The firm's comments add to the pessimism surrounding technology shares, which have led the Nasdaq Composite Index's 54 percent decline from its March 10 peak. Goldman analysts also cut revenue and profit forecasts for communications-semiconductor companies such as Applied Micro Circuits Corp. and computer-consulting companies including Keane Inc. Estimate Cuts Conigliaro, voted last year by money managers as the No. 2 analyst following enterprise hardware companies in Institutional Investor magazine's survey, cut her 2001 profit forecast for IBM by 5 cents to $4.95 a share, which is below the $4.99 a share average of analysts polled by First Call/Thomson Financial. Sherlund, the top-ranked personal-computer software analyst, and his team of six analysts lowered forecasts for 12 companies. Another Goldman analyst, Nathaniel Cohn, lowered revenue and profit forecasts for Applied Micro Circuits, Anadigics Inc. and Conexant Systems Inc. For these companies and others that make semiconductors used in communications equipment, the slowdown in demand will last longer than expected, Cohn said. The firm also lowered estimates on eight computer consulting and systems integration companies, including Agency.com Inc., Cambridge Technology Partners Inc., Cambridge Technology Partners Inc., DiamondCluster International Inc., Keane Inc., Organic Inc., Predictive Systems Inc., Sapient Corp. and Viant Corp. Goldman's technology analysts are having a conference call with clients at 11 a.m. New York time. EMC fell 50 cents to $44.50, Microsoft rose 44 cents to $60, IBM rose 60 cents to $105.90, Hewlett-Packard fell 20 cents to $29.80 and Ariba sank $1.13 to $18.56. Feb/27/2001 9:44 ET