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.

Technology Stocks : MRV Communications (MRVC) opinions? -- Ignore unavailable to you. Want to Upgrade?

To: Mike Winn who wrote (6001)	11/14/1997 4:56:00 PM
From: Sector Investor	Respond to of 42804

=Bargain Hunters Lift High Tech's Most Battered Stks Dow Jones News Service via Dow Jones NEW YORK (Dow Jones)--The technology sector was strong Friday as even some of the most battered stocks began to bounce back. "In general the tech market is up today," said Bear Stearns & Co. analyst Eric Blachno. "It's gotten slaughtered so much I think some people feel some names had gotten oversold." The technology-heavy Nasdaq Composite Index was up 24.1 to 1581, drawing on strong performances from technology stocks that have gotten bludgeoned in the last few weeks, including Applied Materials Inc. (AMAT), which gained 6.6% on heavy volume of 13.5 million shares. Other semiconductor-equipment stocks rebounded, too. The group has been one of the most punished in the technology sector, since many of the companies depend on strong orders from Southeast Asia. But many of them added to strong performances Thursday, including Novellus Systems Inc. (NVLS), which gained 8%, and KLA-Tencor Corp. (KLAC), which rose 5.9% after a 13.5% gain Thursday. Shares of MRV Communications Inc. (MRVC), which makes semiconductor laser diodes and networking products for the fiber optics industry, were up 2, or 8.3%, at 26. While investors remain edgy about Southeast Asia, a soft spot for the semiconductor equipment companies that rely on orders from the region, the reduced stock prices are attracting bargain hunters. "A company like Applied Materials is down 50% from its peak (stock price) in about eight weeks," said Brett Hodess, an analyst at Nationsbanc Montgomery Securities Inc. "A lot of people are saying that you're discounting a lot of the Asian risk at this price level." Disk drive stocks, which were hit hard in the wake of earnings warnings from Western Digital Corp. (WDC) and Read Rite Corp. (RDRT), also rebounded. Western Digital, which hit a 52-week low Wednesday, rose steadily through the day to add to its 6% gain Thursday. Western Digital was up 2 3/8, or 11.3%, at 23 3/8. "Western Digital got so beaten up it's just rebounding from an oversold condition," said Michael Geran, an analyst with the Pershing Division of Donaldson Lufkin Jenrette Securities. Several networking stocks also rose on the tech sector's rebound, analysts said. Bay Networks Inc. (BAY) was up 1 5/8, or 6%, at 28 11/16, while Fore Systems Inc. (FORE) jumped 1 13/16, or 11.3%, at 17 13/16. The Dow Jones index of 15 computer companies was up 3%, while the Dow Jones semiconductor index gained 1.8% on a market capitalization weighted basis. America Online Inc.'s (AOL) stock rebounded after falling 3% on Thursday on concerns that the company's convertible bond offering could dilute its earnings. America Online placed $350 million worth of 4% convertible subordinated notes to raise money for general corporate purposes, buy modems and invest in content, programming and other assets. A Merrill Lynch & Co. upgrade also boosted the shares Friday. Merrill lifted its near-term rating on America Online to accumulate from neutral. The firm's long-term buy rating on the stock is unchanged. -Christopher Grimes; 201-938-5253; and Maria Georgianis; 201-938-5244