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: j g cordes who wrote (38735)	1/6/2003 6:38:20 PM
From: Johnny Canuck	Respond to of 69990

Given the importance of telecom to the new economy, I would gather the collapse of WCOM and near collapse of Q is scaring the heck of politicals. Getting the carriers back to a more stable revenue environment has got to be a priority in a pre-election year. Given that the government has no money to spend changing the regulatory environment is about all they can do. *************************** 5:32PM Merrill Lynch stamps "sell" on Apple, shares take hit (AAPL) by Rex Crum Apple Computer (AAPL) shares fell 13 cents to $14.77 in after-hours trading Monday following Merrill Lynch reinitiating its coverage on the personal-computer maker with a "sell" rating. Merrill analyst Steve Milunovich said Apple appears to be dealing with a thin pipeline for new products and he expects the company to continue to lose market share. Milunovich also estimates that Apple's December quarter sales should be $1.45 billion, or about $50 million below the consensus estimate of analysts surveyed by Thomson First Call. The rating comes out a day before Apple CEO Steve Jobs delivers the keynote address at the MacWorld conference in San Francisco. 4:45PM Fed sets discount interest rates under new rule by Rachel Koning The Federal Reserve on Monday said the primary and secondary interest rates charged to its member banks were set at 2.25 percent and 2.75 percent, respectively. The rate change is part of a new program announced in October, in which the discount rate will now top the fed funds target. The change eliminates borrowing from the Fed by troubled banks at lower rates than rates charged to banks with healthier credit. The key fed funds target, currently at 1.25 percent, was not affected by the policy change. The fed funds rate is charged between banks on overnight loans. [Harry: This should shake out the financial sector a bit. Who is vunerable???] 4:43PM Hutchison expects Q1 EPS to be at high end of forecasts (HTCH) by Carolyn Pritchard Hutchinson Technology (HTCH) said it expects first-quarter fiscal 2003 net income per share to come in at the high end of the 50 cents to 65 cents range it previously forecast. Hutchinson, which supplies suspension assemblies for disk drives, said that its market share in quarter ended Dec. 29 was about 65 percent, up from an estimated 50 percent in the first quarter of fiscal 2002. The firm also said that based on recent order trends it expects financial performance in the second quarter of fiscal 2003 to be similar to the first quarter. Shares of Hutchinson finished the regular trading session up $1.57 at $23.50. In after-hours action, the stock gained an additional $2.05 to change hands for $25.55. [Harry: After years of declining margins and overcapacity, it seems the sector have at least stablized and companies are cashflow positive again. A real uptick in PC business would ramp these stock exponentially. I don't see the rapid growth of the pass as the need for more speed is not there anymore. Is INVX around anymore? HMTT?] 4:19PM EMC raises fourth-quarter earnings estimates (EMC) by Rex Crum EMC (EMC) on Tuesday raised its fourth-quarter earnings outlook, and now expects to report a slight pro-forma profit for the period ended Dec. 31, 2002. EMC said it expects to earn 1 cent to 2 cents a share on revenue of $1.47 billion. Analysts surveyed by Thomson First Call estimated EMC would report a loss of 2 cents a share. The results exclude a previously announced charge of $160 million related to workforce reductions and consolidation of facilities. Including the charge, EMC's net loss for the fourth quarter is expected to be between 2 cents and 4 cents a share when it delivers its complete fourth-quarter results on Jan. 23.

To: j g cordes who wrote (38735)	1/6/2003 11:52:05 PM
From: Johnny Canuck	Respond to of 69990

Still some near term negative run rate issues to address for the carriers, but the fact that it appears some are spending again is start people bargain hunting. Listening the SLR call though, they don't expect an kind of re-bound in wireless/wireless infrastructure spending this year. They are modeling for down revenues in the segment. I'll try to listen to FLEX later this week, but the bulk of earnings season is already upon us. It may be old news already. ************************ Reuters AT&T Sees $1.5 Billion in Charges Monday January 6, 7:44 pm ET By Jessica Hall PHILADELPHIA (Reuters) - AT&T Corp. (NYSE:T - News), the No. 1 U.S. long-distance telephone company, said on Monday it will take $1.5 billion in pretax charges as it cuts about 3,500 jobs, or about 5 percent of its work force, and writes down the value of some Latin American and high-speed Internet assets. ADVERTISEMENT The job cuts come as AT&T continues to pare expenses to offset shrinking revenues and increasing competition. The charges will likely push the company into the red in the fourth quarter, analysts said. Shares of New York-based AT&T, which provides telephone and data services to about 4 million corporate customers and more than 50 million residential customers, shed 18 cents to close at $27.48 on the New York Stock Exchange. AT&T, which recently sold its cable television unit to Comcast Corp.(NasdaqNM:CMCSA - News), faces a fresh bout of competition as its offspring, the Baby Bell companies created by the 1984 breakup of AT&T, enter the long-distance market. At the same time, the long-distance market suffers from a glut of network capacity and slack demand from corporate customers in the weak economy. In the third quarter, AT&T's total revenue fell 8.3 percent to $12.0 billion and its fourth-quarter sales are expected to shrink to $9.2 billion, according to research firm Thomson First Call. More than half of AT&T's job cuts will come from management, and most will leave the company in the first half of the year. AT&T attributed the job cuts to improved processes and automation in services for business customers. The cuts "reflect ongoing cost reduction and downsizing efforts across the industry, given weak demand," said Merrill Lynch analyst Adam Quinton. Sprint Corp. (NYSE:FON - News), the No. 3 U.S. long-distance company, said last month it would cut 2,100 jobs or 3 percent of its work force, to cope with the severe industry downturn. The layoffs will result in a restructuring charge of $240 million, which will lower fourth-quarter earnings by about 20 cents a share, the company said. Wall Street analysts had expected AT&T to earn 66 cents a share for the quarter, according to research firm Thomson First Call. Separately, AT&T said it expanded its relationship with high-speed Internet access company Covad Communications Group Inc. to provide DSL (digital subscriber line) services to consumers. As a result, AT&T will take a charge of $200 million, or 15 cents a share, to write down the value of its own DSL assets, which it acquired from bankrupt DSL company Northpoint Communications in 2001. AT&T reiterated it will take an asset-impairment charge of about $1.1 billion in the fourth quarter associated with its 69-percent stake in AT&T Latin America Corp.(NasdaqSC:ATTL - News). This charge will reduce the quarter's earnings by about $1.40 a share. AT&T Latin America, which provides data services in Brazil, Peru, Colombia, Chile and Argentina, has warned it may file for bankruptcy and hired AlixPartners as its financial adviser.