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Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: Tim Luke who wrote (36597)	2/27/1998 10:05:00 AM
From: Greg h2o	Respond to of 61433

I agree....I think 60 is feasible if there is a buyout after October. Otherwise, I'd put a target of more like upper 40's to 50. regards, greg

To: Tim Luke who wrote (36597)	3/1/1998 7:58:00 PM
From: Glenn D. Rudolph	Respond to of 61433

Apple's Newton bomb Another retreat by computer maker Handheld unit is dropped amid Palm Pilot popularity Fri Feb 27 16:51:26 1998 By Thom Calandra, CBS MarketWatch NEW YORK (CBS.MW) -- The bomb Apple Computer dropped on its Newton unit comes at a time when handheld digital assistants have never been more popular. Apple (AAPL) said Friday it will discontinue development of the Newton operating system and Newton OS-based products. See related story. Hot Columns Higher rates? Busted merger Silver lining Credit cards Hi-ho silver Olympic gold S&P heights State of the Art Informix rebound D.C. scandal Clinton's woes Peapod Inc. Asia talk Union Texas Sliding yields Bonds & insurers Global havoc Japan talk American Radio Radica Games You have to wonder. The Palm Pilot, 3Com's (COMS) dominant personal-digital assistant, should see sales of more than 1 million units this year at about $300 each. Apple's Newton, powered by a 1993 operating system, was the predecessor to the Palm Pilot, which has become the latest rave product for hyperactive executives. Yet ailing Apple, its stock having doubled since Dec. 31 even as it took a beating in the desktop-computer market, lost an early lead and admits it. To be sure, the retreat came as a surprise to few if any analysts. Still, you have to ask the question: Is this latest retreat another heads-up for investors in Apple, whose common stock and bonds have become high-strung speculative instruments? Loss of momentum Yes, says one industry researcher. "On top of Apple losing more and more desktop market share, this latest news probably indicates a loss of momentum," says Jim Balderston, a computer industry analyst at Zona Research Inc. in Redwood City, Calif. Apple's desktop computers hold about 3 percent of the worldwide market vs. perhaps 6 percent or more in 1996. Certainly, Apple lost the "size" game with its Newton, whose operating system powered products such as eMate and Message Pad. (See Apple press releases.) AAPL NASD Last Chg. 23 5/8 +0 1/8 % Chg. Vol. +0.53% N/A Day Lo. Day Hi. 22 9/16 23 7/8 Open Prev. 23 5/16 23 1/2 As of Mar 01/98 7:56 pm ET Last Trade Feb 17/98 4:01 pm ET 15 MIN. DELAY "The main problem was that Newton wouldn't go into your pocket," said Balderston. "This was the odd middle ground between a pocket-sized device and a laptop." Apparently, Newton wouldn't fit into Microsoft's pocket, either. Microsoft (MSFT) earlier this year said it would try to play catch-up with 3Com's Palm Pilot by extending its Windows operating system into these handheld digital assistants. Balderston says investors had best dig into their pockets, look at their Apple holdings and decide whether they want to be holding shares of a company that keeps retreating and retreating. Steve Jobs, Apple's interim CEO, put it like this: "To realize our ambitious plans we must focus all of our efforts in one direction.'' Also on CBS MarketWatch News Index NewsWatch Market Snapshot Silicon Stocks Market Monitor Company news Technical charts Volume alerts Highs, lows Int'l markets Spotlight Index Your Letters Yet another warning flare Balderston says all of this is a warning flare from a company in the tow lane of a super-freeway. "It may be that even though there was a business here for Apple, it doesn't have the flexibility and needs to focus," he says. "This is still a company in really serious trouble, despite its loyalists. In many markets, the fight has past them. It is an island-hopping campaign. They are left in the rear, and the battle has gone around them." Let's give Balderston credit for saying what he thinks, even in the face of Apple stalwarts who may deluge him with electronic protests. Apple shares Friday were little changed after the Newton bomb dropped. It sold for 23 5/8, up 1/8 for the day.