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Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: dennis michael patterson who wrote (15761)	8/18/2001 7:50:53 PM
From: Challo Jeregy	Read Replies (1) \| Respond to of 52237

Dennis, I suggest that we just keep playing the swings - I think you'll enjoy this - pimco.com

To: dennis michael patterson who wrote (15761)	8/18/2001 8:53:32 PM
From: Challo Jeregy	Read Replies (1) \| Respond to of 52237

what's your take on the following two articles - Bloomberg News Sat, 18 Aug 2001, 12:23am EDT Prudential Says Buy Microsoft on Dell Report: Call of the Day By David Wells New York, Aug. 17 (Bloomberg) -- Prudential Securities Inc. analyst John McPeake says investors who unloaded Microsoft Corp. shares today made a mistake. McPeake said he's betting that many people shed the stock because Dell Computer Corp. last night said personal computer sales will be flat or may even fall 5 percent this quarter from last quarter. Microsoft shares opened lower and fell as much as 4.8 percent. Dell is the largest maker of PCs. Microsoft's operating system is used on more than 90 percent of PCs. So, it makes sense that investors would sell Microsoft shares if Dell says computer demand is stalling. What some investors are missing is that Dell's forecast is actually more positive than Microsoft's own predictions, McPeake said. ``A misread of Dell's earnings report may cause weakness in Microsoft shares,'' the Prudential analyst said in an interview. ``We would use that as a buying opportunity.'' The way McPeake sees it, if desktop software sales rise 0.6 percent year-to-year -- a figure he extrapolated from Microsoft's outlook offered on July 19 -- then the number of personal computers being sold would fall 7 percent from last quarter to the current quarter. That's two points better than Dell's worst-case scenario. Dell's forecast that PC demand won't pick up until ``spring of next year'' has also caused some confusion, McPeake said. While that may be true for Dell, it won't necessarily be true for other computer makers, the 36-year old analyst said. quote.bloomberg.com ******************************************************************************************************************************* August 18, 2001 High Cost of Reserving an Xbox Games: Console will be bundled with software at many retailers, raising price to $499 to $1,200. By ALEX PHAM and ABIGAIL GOLDMAN, TIMES STAFF WRITERS Consumers expecting to pay the $299 suggested retail price for Microsoft Corp.'s Xbox video game console may be in for some sticker shock. Beginning next month, many retailers will be requiring customers to pay from $499 to as much as $1,200 to reserve an Xbox console that, like it or not, will come bundled with games, peripherals and warranties. The reason: Microsoft will provide additional marketing money to merchants that agree to include the software giant's games in their bundles. That's because Microsoft's games carry higher profit margins for the Redmond, Wash., company than those published by third-party companies such as Activision Inc. and Electronic Arts Inc. The plan is angering consumers. latimes.com