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

To: Night Writer who wrote (92197)	7/18/2001 6:49:21 PM
From: Night Writer	Read Replies (1) \| Respond to of 97611

Nothing but gloom and doom. Must be the time to buy or hold if you already bought.<G> NW After The Bell - Tech shares hit by gloomy views NEW YORK, July 18 (Reuters) - Technology stocks fell in extended-hours trading on Wednesday, sliding alongside shares of computer giant International Business Machines Corp. <IBM.N> which offered a tepid view of future profits. IBM offered a ray of hope when it reported a higher second-quarter profit on Wednesday after the closing bell as the world's largest computer maker's wide range of products and services buffered it from a downturn in the high-tech economy. But Big Blue's chairman and chief executive, Louis Gerstner, said slack demand for computers and related goods could plague IBM in the second half of the year. IBM's shares tumbled, slumping to $102 on the Instinet electronic brokerage system from Wednesday's close of $104.28. During the regular trading session, IBM fell $4.25, or nearly 4 percent. Another anxiously awaited earnings report came from Siebel Systems Inc. <SEBL.O>. The world's largest seller of customer relationship management (CRM) software warned its revenues would take a hit in the third and fourth quarters. Its shares tumbled to $34.90 on Instinet from $37.64 at Wednesday's close. Siebel beat Wall Street's lowered second-quarter average forecast, helped by stringent cost controls and strong maintenance, consulting and other service revenues. The Nasdaq-100 After Hours Indicator was down 0.4 percent. Another blue-chip giant, tobacco heavyweight Philip Morris Cos. Inc. <MO.N> also released its earnings after the close. It posted a 5.4 percent rise in second-quarter profits, but the maker of Marlboro cigarettes said it sees full-year underlying earnings per share growing at the low end of a range the company gave earlier this year. Philip Morris shares were dented only modestly, easing and then recovering to trade at $46 on Instinet from its close of $45.48. During the regular session, the stock rose 63 cents. Major merger news also came after the closing bell. AT&T Corp. <T.N> said its board unanimously rejected Comcast Corp.'s unsolicited bid to purchase its AT&T Broadband unit, saying the $40 billion stock offer did not reflect the full value of the No. 1 U.S. cable-television company. Shares of AT&T slipped to $20.75 on Instinet from Wednesday's close of $20.94. Comcast's shares <CMCSK.O> traded at $37.75, up from $37.49 at the close. Microsoft Corp.<MSFT.O> was in focus after it asked a U.S. appeals court on Wednesday to reexamine its ruling that the company illegally "commingled" computer code of its Internet Explorer browser and the Windows operating system. Microsoft's shares slipped in after-hours trading to $70.25 from Wednesday's close of $70.57. In other earnings news, drug maker Immunex Corp. <IMNX.O> reported higher quarterly net income as sales of its flagship anti-arthritis treatment Enbrel rose 18 percent and total revenues climbed 12 percent. Its shares ticked up to $15.25 on Instinet from a close of $14.28. Communications chip maker Broadcom Corp. <BRCM.O> reported a second-quarter loss before acquisition-related charges that were in line with diminished forecasts as sales fell 14 percent. Its shares climbed to $40.81 on Instinet from Wednesday's close of $39. Cendant <CD.N>, the travel and residential real estate services firm, announced its second-quarter profits rose, beating Wall Street estimates, driven by growth in its mortgage and time-share businesses and from recent acquisitions. It rose to $20.50 from Wednesday's close of $20.17. IBM's pessimistic view of future results added to the gloom spread by a fresh round of grim earnings reports and downbeat comments from Federal Reserve Chairman Alan Greenspan during the regular session that dampened investors' hopes for a near-term rebound in the sluggish economy and sagging corporate profits. Greenspan said in testimony before Congress there are signs the U.S. economy is escaping its year-long slump, but cautioned that it is not out of the woods yet. His comments unnerved investors who were already reeling from bleak earnings results and forecasts. Computer chip giant Intel Corp. <INTC.O> and software provider Veritas Software <VRTS.O> both unleashed pessimistic future estimates, while financial services behemoth American Express Co. <AXP.N> slammed the Street with news of massive layoffs and charges against earnings. The tech-laced Nasdaq Composite Index <.IXIC> finished with a loss of 51.15 points, or 2.47 percent, at 2,016.17, after diving more than 3 percent at mid-afternoon. The blue-chip Dow Jones industrial average <.DJI> fell 36.56 points, or 0.34 percent, to 10,569.83. ((Elizabeth Lazarowitz, Wall Street Desk, 646-223-6113)) REUTERS

To: Night Writer who wrote (92197)	7/19/2001 3:09:25 PM
From: profile_14	Read Replies (2) \| Respond to of 97611

Even if they did and Dell says that inventory costs it 1% per week, then you would have 25 weeks (1/2 year) worth of inventory (on average) to justify such a statement. I think Kumar is talking out of his rear. Components are commodities and he is just trying to make Dell the tallest midget in the circus, along with Steve Fortuna, probably because of the investment banking deals that they have and the fact that all of those Dell puts at 40 or 45 are being held by those guys. The disparity in valuation is incredible and although those two investment houses are making money, they do not want to kill the goose (Dell) that laid their golden egg (puts), in my humble and speculative opinion, of course.