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

To: PCSS who wrote (1515)	7/25/2002 4:32:11 PM
From: Charles Tutt	Respond to of 4345

The call used to be "buy the dips;" now it's "sell the rallies." JMHO. Charles Tutt (SM)

To: PCSS who wrote (1515)	7/25/2002 7:40:58 PM
From: Elwood P. Dowd	Respond to of 4345

I posted this not knowing it had already been posted but I won't delete it because good news is worth reading twice. Hewlett-Packard's (NYSE:HPQ - News) merger with Compaq may not be Carly's folly after all. Yeah, the combined company's first-half sales are down an estimated 15%, to $38 billion, and the stock since the April merger is off a third, to $12. Yet despite all the trash talk about the deal, Chief Executive Carleton Fiorina might be right in creating the new company. Let's pretend the high-tech Goliath's much-maligned PCs, servers and storage products are worth nothing. That leaves the thriving printer business ($19 billion in sales the last 12 months, down 3%) and a pile of cash. Rival Lexmark, with $4.2 billion in sales for the 12 months trailing, has a $6 billion enterprise value, or 1.4 times sales. Using that multiple, HP's printer business is worth $27 billion. Add HP's $12.4 billion in cash, subtract the $5 billion in debt, and the stripped-down company value is only a little shy of its market cap. In reality the rest of the company, with 75% of sales, is certainly worth something. Ergo, HP is undervalued, even though its 28 P/E seems high. Deutsche Bank analyst George Elling argues now's the time to buy HP. --Daniel KrugerMalone Math

To: PCSS who wrote (1515)	7/26/2002 11:57:52 AM
From: Elwood P. Dowd	Respond to of 4345

Techs get early boost from chips By Rex Crum, CBS.MarketWatch.com Last Update: 11:15 AM ET July 26, 2002 NEW YORK (CBS.MW) -- Semiconductor stocks gave a boost to technology shares and the Nasdaq Composite in early trading Friday after Goldman Sachs upgraded the chip-equipment sector. The Nasdaq ($COMPQ: news, chart, profile) rose 14.10 point, or 1.1 percent, to 1,255 in late-morning trading. The tech-heavy index is trying to recover from a sell-off that led to a 50-point drop on Thursday. Semiconductor shares got some relief after Goldman Sachs upgraded the chip-equipment sector. Goldman analyst James Covello said that "for short periods of time, factors such as funds flow and seasonality can be important drivers of the stocks." However, he cautioned that "we are not saying that fundamentals are improving as we have little visibility as to when fundamentals will once again become more favorable." See full story. Goldman's upgrade came one day after Taiwan Semiconductor (TSM: news, chart, profile), the world's largest semiconductor foundry, cut its capital-spending forecast for the year. Among semiconductor stocks, chipmakers Intel (INTC: news, chart, profile), Rambus (RMBS: news, chart, profile) and Micron Technology (MU: news, chart, profile) were trading up, while Advanced Micro Devices (AMD: news, chart, profile) and communication-chip maker Texas Instruments (TXN: news, chart, profile) were down. Mobile-phone chipmaker Qualcomm (QCOM: news, chart, profile) was up slightly after delivering a positive third-quarter report, and fourth-quarter forecast on Thursday. See full story. Chip-equipment makers Applied Materials (AMAT: news, chart, profile), Teradyne (TER: news, chart, profile) and ASML Holdings (ASML: news, chart, profile) were moving up, while Novellus (NVLS: news, chart, profile), and KLA-Tencor (KLAC: news, chart, profile) were trading below the line. The Philadelphia Semiconductor Index ($SOX: news, chart, profile) fell 3.17 points, or 1 percent, to 314.88. In the software sector, Microsoft (MSFT: news, chart, profile) was up $2.05, or nearly 5 percent, at $44.87 after the world's largest software maker held its analyst day on Thursday. Other big-name software makers were on the rise, with Oracle (ORCL: news, chart, profile), Siebel Systems (SEBL: news, chart, profile), BEA Systems (BEAS: news, chart, profile) and Adobe Systems (ADBE: news, chart, profile) moving up. Hardware stocks were mixed with Sun Microsystems (SUNW: news, chart, profile), Dell Computer (DELL: news, chart, profile), Gateway (GTW: news, chart, profile) and disk-drive maker Maxtor (MXO: news, chart, profile) on the upswing, while IBM (IBM: news, chart, profile), Hewlett-Packard (HPQ: news, chart, profile), EMC (EMC: news, chart, profile) and Apple Computer (AAPL: news, chart, profile) were in negative territory. Networking shares showed few gains in early trading. Cisco Systems (CSCO: news, chart, profile) was up 37 cents, or 3.2 percent, at $11.97, and Tellabs (TLAB: news, chart, profile) rose 7 cents to $5.50. However, JDS Uniphase (JDSU: news, chart, profile) lost 35 cents, or 13.4 percent, to go to $2.18 after posting a fourth-quarter loss of nearly $1 billion on Thursday. See full story. Lucent Technologies (LU: news, chart, profile), Nortel Networks (NT: news, chart, profile), Ciena (CIEN: news, chart, profile), Juniper Networks (JNPR: news, chart, profile) and U.S.-traded shares of Alcatel (ALA: news, chart, profile) were also heading down in late-morning trading. Rex Crum is a reporter for CBS.MarketWatch.com in San Francisco.