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

To: Captain Jack who wrote (1958)	10/15/2002 8:13:44 PM
From: Oeconomicus	Read Replies (1) \| Respond to of 4345

All this talk about Micron vs. Dell boxes - did anyone notice HPQ crossed back above its 50-day EMA on strong volume. Another 10%+ before any resistance, too. siliconinvestor.com Even better, the forward PE on reduced expectations is <11 - even Carly deserves better than that. With any confidence in that $1.24 estimate, this should be a $18-$25 stock. Feel free to debate. Bob

To: Captain Jack who wrote (1958)	10/15/2002 10:18:38 PM
From: PCSS	Read Replies (2) \| Respond to of 4345

UPDATE 2-Intel's 3rd-qtr earnings rise vs dismal year-ago SAN FRANCISCO, Oct 15 (Reuters) - Intel Corp.'s (INTC) third-quarter earnings rose from a year ago but its revenue forecast for the holiday sales-driven fourth quarter suggests that a recovery in the technology industry is still far off. Intel shares fell sharply after the earnings report, as the chipmaker posted per-share earnings below consensus estimates and forecast fourth-quarter revenues below current Wall Street expectations. The stock dropped by as much as 14 percent to $14.25 after its earnings release, which came after the close of regular U.S. trading. Intel shares, which rose $1.42 to $16.52 in regular trade on the Nasdaq, are down by almost 50 percent this year. Intel said on Tuesday revenue in the holiday sales-driven fourth quarter would be between $6.5 billion and $6.9 billion, implying sales ranging from flat with the third quarter to up by about 6 percent -- far less than the 10 percent to 15 percent increase that is typical for Intel and the personal computer industry at large. Printer and computer maker Hewlett-Packard Co. (HPQ) and others have already noted that the back-to-school shopping season which comes in the third quarter was lighter than had been hoped for, and Intel's results largely bear that out. "They're still waiting for a recovery and have not seen it," said Hans Mosesmann, an analyst at Prudential Securities. "This is bad news and worse than a lot of people were expecting." "As long we have a soft market, earnings are going to be lower than we would like," said Andy Bryant, Intel's chief financial officer, in an interview. "The economy is still not recovering in our industry." Santa Clara, California-based Intel said net income rose to $686 million, or 10 cents a share, from $106 million, or 2 cents a share, a year ago. Revenue fell slightly to $6.5 billion, compared with $6.55 billion. Excluding one-time acquisition-related costs of about $108 million, Intel said it earned 11 cents a share. On that basis, analysts had forecast Intel to earn 13 cents a share, within a range of 10 cents to 14 cents, on revenue of $6.52 billion, according to Thomson First Call. Intel also lowered its capital spending budget for the year, paring it to about $4.7 billion, lower than the previous expectation of $5.0 billion to $5.2 billion, sending shares of chip-equipment companies tumbling in after-hours trading. Intel said the majority of the spending reduction came from cost-savings within existing plans. The company added it will reduce slightly spending on chip equipment in fourth quarter by reusing some equipment. Intel said its gross margin in the fourth quarter will be 49 percent and it cut its forecast for gross margin for 2002 to about 49 percent. Previously, Intel had forecast a gross margin of 51 percent, "plus or minus a couple of points," in 2002. "The big issue is they've taken their gross profit margin down and it speaks to some of the inventory reduction issues that we see," said Joe Osha, an analyst at Merrill Lynch. Advanced Micro Devices Inc. (AMD) , Intel's principal rival in the market for microprocessors that are the "brains" of PCs, stunned investors on Oct. 2 with news that its third-quarter revenue would be 18 percent below Wall Street expectations at the time, leading to a large operating loss. AMD cited a weak PC market and a build-up of chips at PC makers. Analysts expect Intel to report a fourth-quarter profit of 16 cents a share on revenue of $6.92 billion, according to First Call. Intel in early September published its mid-quarter update, tightening its projected revenue range for the third quarter to $6.3 billion to $6.7 billion compared with its previous projection of $6.3 billion to $6.9 billion, reassuring investors at the time that the beleaguered PC industry was not getting far worse. With a few notable exceptions such as Dell Computer Corp. (DELL) , the PC industry is having a bad year, with some analysts calling for flat sales in 2002, following a dismal 2001, when year-over-year sales fell for the first time since the mid-1980s. Analysts and market research firms have steadily ratcheted down estimates for 2002 worldwide shipments of PCs.