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Technology Stocks : COMS & the Ghost of USRX w/ other STUFF -- Ignore unavailable to you. Want to Upgrade?

To: David Lawrence who wrote (10514)	12/11/1997 2:09:00 AM
From: Scrapps	Respond to of 22053

Give me back that "Oops", it's mine!!! I should-a figured that out on my own!! :O/

To: David Lawrence who wrote (10514)	12/11/1997 7:36:00 AM
From: Moonray	Read Replies (1) \| Respond to of 22053

General Commentary Nowhere to run to, nowhere to hide... These lyrics capture the mood in the tech sector... Software and PC stocks, which had held up remarkably well during the early fall retreat, have been shot down over the past two days... The first bullet was fired Tuesday when Oracle reported disappointing sales/earnings (blaming soft sales in Asia due to regional turmoil)... Microsoft fired the second round by announcing that its Asian revenues were slowing due to weaker than expected PC sales. The message being sent by the two software giants is that the financial crisis in Asia will have a much bigger impact on corporate America than the market originally anticipated. What is most troubling about this revelation is that conditions in Asia aren't likely to improve noticeably for at least a couple of quarters. Consequently, we expect the overly optimistic street to start gradually trimming future earnings estimates. With the market trading at unusually high valuation levels, even a modest contraction in estimates could trigger a sizable retracement. MSFT's announcement sounded another alarm bell by suggesting that CY98 estimates for PC growth, currently running in the 15% range, are too high... MSFT's warning was given additional weight when IDC lowered its PC growth forecast for 1998 to 12%... The research firm's estimate for Asian PC sales was slashed from 21% to 16%... Already anxious investors reacted quickly to the news by indiscriminately dumping stock in PC makers... After today's loss of 3 1/4 points, Compaq, the leading PC maker, is in jeopardy of taking out important support. Though the indices firmed a bit into Wednesday's close, look for the tech sector to resume its slide Thursday as another industry leader, Quantum, warned that its earnings would miss street estimates ($0.60) for the current quarter by a wide margin due to intense price competition in the high end drive market. The company expects to post earnings for the quarter of $0.25-$0.30... The news should enable the disk drive group to retain its title as leader of the tech slide. Events over the past couple of days suggest that the tech sector is on the verge of a widespread bear market... We expect a slew of additional earnings warnings to keep the group on the defensive over the short- to intermediate-term... Given our increasingly pessimistic outlook, we are removing all our favorites in the following industries: Disk-drive (Quantum), Chip (Atmel, Cypress, Intel and VLSI) and Chip Equipment (Applied Materials and Kulicke & Soffa)... While we are holding on to a few of our favorites in the other sectors, investors holding long positions in these stocks might want to consider hedging against additional downside risk. briefing.com Ka$h is king. o~~~ O