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

To: Zeev Hed who wrote (87546)	6/27/2002 3:24:59 PM
From: ftian	Read Replies (1) \| Respond to of 99280

Zeev, will the market test yesterday's low before July 4?

To: Zeev Hed who wrote (87546)	6/27/2002 3:58:28 PM
From: marginnayan	Read Replies (1) \| Respond to of 99280

Did you get a chance to read this one: biz.yahoo.com LOS ANGELES, June 27 (Reuters) - Shares of Nvidia Corp. (NasdaqNM:NVDA - News) plunged nearly 16 percent on Thursday to their lowest level in 18 months as concerns about the graphics chipmaker's sales and growth prospects mounted amid increasing competition. Thursday's drop came after a 5.2 percent decline on Wednesday following a revenue warning from Cirrus Logic Inc. (NasdaqNM:CRUS - News) because of a shortfall in production of chips for Microsoft Corp.'s (NasdaqNM:MSFT - News) Xbox video game console. Nvidia makes the graphics chip for the Xbox. Ryan, Beck & Co. analyst Brian Foote said in a research note on Thursday that Nvidia's growth in unit sales was being undercut by a decline in the prices it charges for its chips. Foote also said he expected some discounting of products in the next two weeks by both Nvidia and its primary competitor, ATI Technologies Inc. (Toronto:ATY.TO - News; NasdaqNM:ATYT - News). Foote's comments follow a similarly cautious note on Wednesday from Thomas Weisel Partners analyst Eric Gomberg, who reduced his estimates for Nvidia based on earnings warnings from Cirrus and Advanced Micro Devices Inc. (NYSE:AMD - News). "If Xbox sell-through remains below expectations," Gomberg said, "we believe it must eventually be felt by (Nvidia), which derives 15 percent of its revenues from the console." He also said AMD's warning of soft sales could lower sales of Nvidia graphics processors, since the two companies are closely linked. Like Nvidia, AMD sells chips used in personal computers. Also on Wednesday, Prudential Securities analyst Hans Mosesmann cut his rating on Nvidia to "hold" from "buy," citing the need for caution while awaiting new product launches from the company. Mosesmann also slashed his price target on the stock to $21 from $48. Nvidia shares were down $3.07, or 15.3 percent, at $17 in late afternoon Nasdaq trade. Earlier the stock fell to $16.89, its lowest level since January 2001. Nvidia shares have dropped 75 percent since the start of the year. The stock had gained more than 300 percent in 2001, making it the best performer in the Standard & Poor's 500 Index for the period. Earlier this month, JP Morgan downgraded Nvidia to "market performer" from "long-term buy," citing weak growth prospects and the overhang from a Securities and Exchange Commission investigation into the company's accounting practices.