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.

Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (38139)	10/2/2002 12:33:30 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 68784

Dell Lifts 3rd Quarter View Tuesday October 1, 8:34 pm ET By Caroline Humer NEW YORK (Reuters) - Dell Computer Corp. (NasdaqNM:DELL - News) raised its third-quarter revenue guidance to $9.1 billion and expects per-share earnings to come in at the upper end of a previous forecast, the personal computer maker said on Tuesday. ADVERTISEMENT The news from Dell, which made the announcement ahead Wednesday's meeting with analysts in Austin, Texas, sent shares in the PC heavyweight higher by more than 4 percent in after-hours trade and boosted shares in other technology stocks. Dell, the No. 2 personal computer maker worldwide behind Hewlett-Packard Co. (NYSE:HPQ - News), said it raised its revenue outlook for the quarter ending Nov. 1 by $200 million from $8.9 billion due to "broad-based" momentum with customers as well as growth in shipments of servers and storage systems. The company said it expected third-quarter earnings per share of 21 cents, the top end of the 20 cents to 21 cents per share range it gave in August. Analysts polled by Thomson First Call had predicted, on average, earning per share of 21 cents per share, up from 16 cents per share in the year earlier quarter, according to Thomson First Call. They forecast revenue of $8.9 billion. After closing 4.81 percent higher ahead of the news on the Nasdaq at $24.64, Dell's shares climbed even higher in after-hours trade to $25.63. Its stock has held up comparatively well, losing 11 percent so far this year while the American Stock Exchange Computer Hardware Index (AMEX:^HWI - News) has fallen 43 percent. After the market close, shares in chip leader Intel Corp. (NasdaqNM:INTC - News) climbed 2.7 percent, Web gear giant Cisco Systems Inc. (NasdaqNM:CSCO - News) rose 2.1 percent, extending Tuesday's strong gains that helped lift the Nasdaq composite index 3.5 percent on the day. "Dell's stock has clearly been a hiding place for technology investors," John Rutledge, portfolio manager of the $15-million Evergreen Technology fund. DIVERSIFICATION A FOCUS Analysts said the company, which has managed to grow despite weak corporate technology spending, will keep trying to gain market share in PCs both in the United States and abroad even as it introduces new products, such as computer printers. Dell finally committed on Sept. 24 to stepping into the computer printer market in an agreement with Lexmark International Inc. (NYSE:LXK - News). "I like the strategy," said Evergreen's Rutledge, "Given the consolidation in the industry Dell has a huge opportunity." Needham & Co. analyst Charles Wolf said that he expected Dell to rapidly gain market share in the printer market. "From a standing start in 2003, it should capture a 12 percent share by 2006 and a 20 percent share in 10 years," Wolf wrote in a research note. Dell's rivals include HP, Gateway Inc. (NYSE:GTW - News), International Business Machines Corp. (NYSE:IBM - News), and Apple Computer Inc. (NasdaqNM:AAPL - News). While many pointed to the emerging printer business as a key future growth factor, others pointed to the strength of Dell's relationships with corporate customers. "The reality is that this company has deep relationships with enterprise customers and it just wants to leverage its superior manufacturing and distribution model as the low cost distributor and manufacturer," said Bob Rezaee, a portfolio manager at Montgomery Asset Management, "No one can get close to that sort of model." Overseas operations was another issue that analysts were talking about ahead of Wednesday's meeting with analysts. "They've had some big success in the U.K. and Germany. They've got operations everywhere, but they haven't been able to mirror their successes in those countries elsewhere," said Martin Reynolds, an analyst at Gartner Inc. "They may see that as an opportunity or a challenge." In addition to its expansion into other countries including China, Texas-based Dell has been trying to diversify its revenue, which comes primarily from sales of PCs and larger server computers used by businesses. Dell executives have said that the company intends to take its low-cost model into other areas and will begin selling Dell-branded printers, Dell handheld computers and unbranded, white-box computers. (Additional reporting by Reed Stevenson) biz.yahoo.com