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

To: Art C. who wrote (2392)	2/3/1998 1:02:00 AM
From: Chris	Respond to of 8219

hi all: briefing.com.. please note the statement on IBM.. I have always have my reasons for my analysis.. we are going to 105 and there is a chance it will fail to clear that resistnace. Tech Stock Analysis ------------------------------------------------------------------------ Updated for: February 03, 1998 Please note: Briefing.com is provided as an information service only. Charter Media, Inc. and Briefing.com do not make specific trading recommendations or provide individualized investment advice. Readers should make investment decisions based on thorough research and their own investment criteria. See Disclaimer. General Commentary Now that's follow-through... Tech stocks exploded to the upside amid a surge of new buying... Sidelined money being put back to work as Asian fears subside and psychology improves. Not surprisingly, the high-profile, large-cap stocks that held up better during the most recent tech sell-off are leading the recovery rally... Cisco was the first such company to break to new high ground... Dell, Microsoft and AOL joined the party on Monday, with each stock driving to record heights amid increased volume... As confidence in the rally grows, look for the participation to broaden and for second and third tier companies to assume leadership... But for at least the next several days, the big boys should dominate the action. As noted on this page for the past couple weeks, strength in the leadership stocks and bargain hunting in a number of badly beaten down industries (chip equipment, disk-drive, networking) were the early forces behind the sector's resurgence... Short-covering, technical buying and sector rotation will keep the group on an upward path... How long the group can sustain its upward momentum is unclear... But with most of the earnings news behind it and Asia (temporarily) settling down we see about a one month window of opportunity for bulls to dominate the landscape... After which, companies will begin to make pre-earnings warnings and the game will be up... Until such time, the sector's bias will remain bullish and investors should view pullbacks as buying opportunities. Cisco and PeopleSoft are due to report earnings after today's close... For more earnings info, see Briefing's Earnings Calendar/Tech Calendar. Industry Updates Computer Systems & Peripherals \| Networking \| Software \| Semiconductor \| Semiconductor Equip. \| Telecom Equipment Computer Systems & Peripherals Brief: Dell (+5 1/8) muscled its way to a new all-time high amid a surge in volume... Stock's breakout targets the 115 area... IBM (+1 13/16) rallied back above 100 and is well situated to fill gap resistance at 104 11/16 over next couple days... Apple (-5/8) announced that CompUSA will be only national retail chain to carry its computers in the future... Compaq (+5/16) announced that it was cutting prices on its corporate PCs by as much as 18% due to lower component costs... With notable exception of Quantum (+1 7/8) and EMC (+3 3/16), disk drive related companies were narrowly mixed... With the bad earnings news in the past and Asia settling down, the PC and disk drive stocks likely to maintain bullish tone over the next few weeks. Computer Networking Brief: CNBC reporting speculation that Newbridge Networks will announce a major restructuring and that it will miss its quarter by $0.10-$0.15 cents... Trading in the stock was halted shortly before Monday's close... Cisco, which climbed to another record high Monday, due to report earnings after today's close... Street looking for gain of $0.42... Over past four quarters company has met or slightly exceeded estimates... Given rally into number any negative news will be exaggerated... Xylan continued to climb, adding 3/16... Stock up nearly 40% in the last week... Resistance in the 22-23 area, with gap support at 16 1/2... 3Com's Palm Computing Inc and Qualcomm announced that Qualcomm has licensed Palm computing's platform for integration into QCOM's next-generation CDMA wireless products... QCOM to use components of Palm Computing platform to develop new wireless products that will facilitate use of data applications, e-mail and Internet in wireless computing environments. Computer Software & Services Brief: Microsoft soared 5 11/16 to close the session at a new all-time high... Upside break out and new product pipeline leaves stock poised for test of the 165-170 area... AOL pierced 100 barrier, next stop 110... Stock split?... Yahoo! jumped 2 5/8 after analyst in NYT suggested stock could hit 80 by year end... PeopleSoft gained 2 11/16 ahead of its earnings due after today's close... Street expects gain of $0.14... Company has a history of beating consensus estimates... Developing double-bottom suggests that if stock can close above 39 1/2, stock will run to the 47-48 area... BMC Software added 2 7/8 on news that company acquired BGS systems for $285 mln in stock, or $45 a share.. BMCS closed just shy of an all-time high. Semiconductor: Brief: Another big day for the chip sector, as investors took the rally in Asian markets as a buy signal... Group now up nearly 17% year-to-date... Big winners were Intel, VLSI, Lattice, Altera, Atmel and LSI Logic... Latter stock responded to news that NationsBanc Montgomery Securities upped its rating to buy from hold... Two stocks not participating in the advance were Advanced Micro (-1/8) and National Semi (-4 5/8)... The former was downgraded to sell from neutral by Hermes... The latter tumbled after warning that it would miss Q3 expectations by a wide margin due to Asia and troubles with Cyrix acquisition. Semiconductor Equipment Brief: A very strong day for this group as investors sought out decent values in tech sector and this beaten up industry offers a number of attractive alternatives... Applied Materials (+1 7/8) took out important resistance and is poised for move to the low-40s... Company introduced a new, completely integrated pair of wafer defect detection systems that offer chip manufacturers a total solution for achieving faster yield gains throughout the wafer manufacturing cycle... Other big winners included Kulicke & Soffa (+1 7/8), Novellus (+1 11/16), Teradyne (+2 3/4) and Asyst (+1 7/16)... Even ETEC Systems pressed higher (+7/8) despite warning that it would miss its estimate due to delay in shipment of one system. Telecommunications Equipment Brief: Telecom equipment stocks put in another good session, with Andrew, ADC Telecom, Scientific-Atlanta, Qualcomm and Advanced Fibre pacing the advance... Gains posted by secondary names encouraging, suggest that group will maintain its bullish bias over the near-term... Inspirational Networked selected SFA's PowerVu digital video compression system for the rollout of its new "INSP-Digital" in Q1 1998. [ Index ] ------------------------------------------------------------------------ This page was downloaded by your browser Tuesday, February 03, 1998 00:51:28 ET and is the latest version available as of that time. ------------------------------------------------------------------------ Copyright c 1998 Charter Media, Inc. All rights reserved.