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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: kemble s. matter who wrote (27627)	1/14/1998 3:45:00 PM
From: Boplicity	Read Replies (2) \| Respond to of 176387

US computer co results seen mixed, rich got richer Reuters, Wednesday, January 14, 1998 at 15:28 By Richard Melville NEW YORK, Jan 14 (Reuters) - Computer companies are expected to report mixed fourth quarter results, with the strongest companies extending their leadership and smaller competitors fighting to hold their ground. Among personal computer makers, analysts expect Compaq Computer Corp (NYSE:CPQ) and Dell Computer Corp (NASDAQ:DELL) to widen their powerful edge in market share and post solid earnings increases over a year ago, boosted by strong business in Europe that should offset the effects of economic tumult in Asia. The timing couldn't be better in Europe: an improved business climate in European countries, which offer a far larger market than Asia for most U.S. personal computer companies, could spell relief from what investors fear will be bad news from Asia, analysts said. Merrill Lynch analyst Lucianne Painter said high-end corporate computer sales were particularly strong and, on the consumer side, market leaders reinforced their positions. "Enterprise, which is workstations and servers, is the area of exceptional strength and that's been consistent throughout the quarter," she said in a Merrill technology conference call. On the consumer PC business, she said, "The rich continued to get richer faster. We would expect to continue to see market share consolidation among the top tier and think there's three clear winners, Compaq, Dell and Hewlett-Packard (Co) (NYSE:HWP)." Strong business activity in North America and Europe should help many companies, including International Business Machines Corp (NYSE:IBM). IBM's fourth quarter earnings per share are sen rising nine percent to $2.15, according to First Call. For IBM, mainframes, high-end servers and its services operation all should post gains, said SoundView Financial analyst Gary Helmig. "I have operating income, which has been lackluster, actually showing seven to eight percent growth," Helmig said. "North American demand was reinvigorated and Europe finally got into some reasonable growth rates." Digital Equipment Corp (NYSE:DEC) will lead off the season. The company is scheduled to report early Thursday morning. While analysts expect earnings to be up from last year's levels, most are focusing on what Digital says about its future plans, given its deals to sell its Alpha microprocessor and network products businesses. However the numbers turn out, most analysts are counselling investors to pay more attention to forward-looking guidance from the companies than the quarterly performances. Part of the reason is the full impact of Asia's turmoil has not yet worked its way through to the bottom line at many companies. For PC companies, another reason is analysts are still unsure of the degree to which price cuts by the top vendors seeking to add consumer market share will depress earnings growth across the industry. One favorable surprise has already been provided by Apple Computer Inc (NASDAQ:AAPL), which predicted it would return to profitability this quarter. The news, which initially produced a surge in Apple's share price, has since been met with muted enthusiasm on Wall Street, where analysts remain concerned over a lack of revenue growth at the struggling computer maker. The following is a list of First Call estimates and prior year earnings for some major companies in the industry: NAME QTR ESTIMATE YEAR-AGO Apple Q1 $0.35 ($0.96) Compaq Q4 0.83 0.66 Dell Q4 0.75 0.51 Digital Equipment Q2 0.43 0.15 Gateway Q4 0.44 0.56 Hewlett-Packard Q1 0.88 0.87 IBM Q4 2.15 1.97 Micron Electronics Inc (NASDAQ:MUEI) Q2 0.11 0.30 Sun Microsystems Inc (NASDAQ:SUNW) Q2 0.54 0.46 Unisys Corp (NYSE:UIS) Q4 0.27 0.15 NOTE: For periods ending in December except Dell and Hewlett-Packard (January) and Micron Electronics (February). Greg--> I am going to out limb here say we have reached a top at 91.5 I sold my shares. Mostly wrong though. Now why is CPQ down on such a good report as above. <ggg>

To: kemble s. matter who wrote (27627)	1/14/1998 4:44:00 PM
From: James L. Fleckenstein	Read Replies (2) \| Respond to of 176387

Kemble, fair enough! Making money to stay off ladders and play with the kids is the American Dream. Wouldn't knock it. I think the thing that is inaccurate about perceiving Bill as "negative" is that he made a lot of money in the japanese market in the 80s, where excessive valuations lead the markets and economy into the bucket. Having profited financially from that debacle and seeing similar signs in the country where your, his and my kids live, makes him concerned. To construe this as "negative" is overly judgemental in my opinion when in fact it is a world view that is based on experience, pain and concern. Maybe it is not in agreement with yours and maybe it decries some of the institutions that made you money. So be it. Anyway, he has a regular column that may be of interest, if for Contrarian viewpoint, if nothing else. www. stocksite. com.