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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: S.C. Barnard who wrote (11425)	12/16/1997 8:48:00 AM
From: William Hunt	Read Replies (3) \| Respond to of 97611

THREAD-----Dow Jones Newswires -- December 15, 1997 Tech Boosters See Worldwide PC Demand Down In '98 NEW YORK (Dow Jones)--Some of technology's biggest boosters on Wall Street are beginning to lower their sights on the personal-computer sector for 1998. SoundView Financial Group, the Connecticut firm known for its technology coverage, now expects PC sales to grow by 18% in 1998 from 1997. The firm had estimated 21% growth. And BancAmerica Robertson Stephens, another firm associated with technology, has reduced its expectations even more. The firm was originally counting on 18% year-over-year unit sales growth, but lowered that figure to 15%. Now, it has reduced its projection to 13% growth in 1998. This follows a report last week from market-research group International Data Corp., which said a downturn in some Asian economies will trim 1.4% off worldwide unit growth in 1998, to 13.5%. While these firms tend to use different ways of tracking data, the message appears to be the same: Computer sales worldwide may be dragged down next year by Asia. "We and others had expected a fairly healthy growth rate (in 1998) - we felt the less-developed markets would see fairly strong unit growth as PC devices got down to prices that made them attractive," said SoundView PC analyst Mark Specker. "I think we're just not going to see that kind of demand out of Asian markets." Compaq Computer Corp. (CPQ) officials said recently that a rebounding Western European sector should help offset weakness in Asia. But the fledgling turnaround in Europe hasn't proved it has legs, analysts said. Dan Niles, a BancAmerica Robertson Stephens analyst, said PC demand was the running theme for the broad downgrades his firm gave to technology stocks Monday. In this environment, the winners are likely to be the PC companies that have been winning all along, said Daniel Kunstler, a J.P. Morgan Securities Inc. analyst. To Kunstler, this means Compaq, Dell Computer Corp. (DELL) and Hewlett-Packard Corp. (HWP), which recently topped market-share lists. "The Asia impact on the market leaders is probably blunted," Kunstler said. "The direct exposure to Asia is there, but it is not overpowering." -Christopher Grimes; 201-938-5253 BEST WISHES BILL