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.

Technology Stocks : Hewlett-Packard (HPQ) -- Ignore unavailable to you. Want to Upgrade?

To: Elwood P. Dowd who wrote (713)	6/4/2002 6:17:43 AM
From: PCSS	Respond to of 4345

All-Star Analyst Dan Niles Recommends The Following Stocks: AAPL, HPQ, and STM CHICAGO, Jun 4, 2002 /PRNewswire via COMTEX/ -- Even with a sputtering economy, 5-Star analyst Dan Niles managed an unbelievable total return of +188% for the first quarter of 2002 with computer hardware stocks. Find out what stocks he believes will profit investors during the remainder of 2002 and into 2003. allstarpicks.zacks.com . Here are the details on Analyst Dan Niles' Stock Picks for today: Apple Computer Inc. (AAPL) designs, manufactures and markets personal computers and related personal computing and communicating solutions for the sale primarily to education, creative, consumer, and business customers. Some exciting products for Apple come in the form of their new eMac and a Powerbook that includes a faster MPU, 10GB larger hard drive, and a higher resolution LCD all for only a $200 price increase. The eMac might make the biggest impact, as it replaces a product that is 4 years old and it fits nicely in their desktop lineup that includes the old CRT iMac and new flat panel iMac. It also has a "coolness" factor that makes it highly desirable by its targeted audience. Mostly students needing, and young adults wanting something powerful and sleek. It also has a bunch of new multimedia features for digital cameras and the new iPod, which is an amazing MP-3 unit with mega music storage capacity. Niles has a 2002 EPS estimate set at $.50, and a 40% increase in 2003 to $.70. With the better than expected EPS numbers in 2002, Niles has a 12-month price target for Apple set at $32. Apple is currently trading around $23. Hewlett-Packard Company (HPQ) is a global provider of computing and imaging solutions for business and home, focused on capitalizing on the opportunities of the Internet and the proliferation of electronic services. Now that the merger with Compaq looks to be a done deal, investors can look at the combined company and evaluate their total value. The court battle and proxy fight look to be over and Hewlett-Packard should be able to get back to normal. Niles had been impressed with Compaq's ability to streamline their business, which has kept them from being blown out of the water by other manufacturers like Dell. Now it is time to start doing the same streamlining with Hewlett. Hewlett has been able to improve their balance sheet by reducing their own inventory and receivables levels from the first quarter '02. HP has relied heavily on their Imaging and Printing group, which generated 46% of total revenues with an operating margin of 15.7% in the second quarter. The estimates for 2002 EPS is currently $.83 and expected to increase in 2003 to $1.25. Niles believes HPQ is reasonably valued and believes the merger with Compaq will help their bottom line. STMicroelectronics N.V. (STM) is a global independent semiconductor company that designs, develops, manufactures and markets a broad range of semiconductor integrated circuits and discrete devices used in a wide variety of microelectronic applications. Niles looks at this stock as a good buy as the broader economic recovery gets into full swing. STM has done an excellent job of tightening their belts and should see some good leverage as the revenues start to increase. During the late 1990's any stock with one product took off, but today a diversified business model with broad technology platforms will perform best. Based on the company's merits, it looks to be a good buy at current valuations according to Niles. To get Dan's sector analysis and to read the entire article click: allstarpicks2.zacks.com .