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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Softechie who wrote (2131)	10/30/2001 11:33:28 AM
From: Softechie	Respond to of 99280

Storage pricing trend a concern: Merrill (SUNW, EMC, HWP, IBM) by Tomi Kilgore Analyst Tom Kraemer at Merrill Lynch said his research indicates network storage pricing has been "extremely aggressive," but said the rates of declines have not yet started to accelerate. "We, however, remain concerned that the longer this weakness persists, the higher the likelihood that pricing and margins will fall as vendors compete for less business," Kraemer said in a note to clients. Among companies in the business, Sun Microsystems (SUNW) is losing 30 cents to $9.56. Kraemer said customers seem to be reacting well to Sun's new products, but demand remained an issue. He still thinks it's too early to buy EMC (EMC), as pricing remains "very rough," and competitors appear to be making progress. The stock is shedding 71 cents to $12.24. Hewlett-Packard (HWP) is slipping 49 cents to $16.91. Kraemer said the distraction created by its merger announcement with Compaq Computer (CPQ) is hurting productivity, "making a weak situation worse." He said IBM continues to be steady in the Unix server market, but said its systems integration and consulting business is still weak. The stock is unchanged at $108.62.