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Technology Stocks : The New QLogic (ANCR) -- Ignore unavailable to you. Want to Upgrade?

To: Patrick Sharkey who wrote (14872)	3/4/1998 8:45:00 PM
From: Alan Aronoff	Respond to of 29386

Patrick, Here's a couple of articles put on the wire in the last few hours. Reuters came out at 7:34 EST and the Fool article at 5:54 EST. A slight inventory oversupply of PCs certainly has no bearing on Ancor and the Fibre Channel industry. But we've all seen the way the Street loves to panic buy and panic sell the tech sector. And usually during these times it has difficulty differentiating between DRAM and DSL. Consequently, the market may provide some great buying opportunities for many tech stocks over the next few days for those who aren't afraid to be contrarians... TOKYO, March 5 (Reuters) - The key March Globex S&P 500 stock futures traded on GLOBEX were down sharply in early Asian trade after Intel Corp's unexpected warning that its first-quarter earnings would be below expectations. At 0018 GMT, the index was down 11.50 points at 1,036.40. Earlier, the index traded in an intraday range of between 1,034.70 and 1,044.00. Intel, the world's biggest chip maker, announced late on Wednesday that its sales and earnings would be below expectations for the current quarter due to sluggish demand for personal computers. "Weaker-than-anticipated demand...is expected to cause revenue and net income levels to fall below Intel's expectations for the first quarter of 1998," Intel said in a statement. The announcement quickly triggered a tumble in technology shares in after-hours trading in New York, as investors scampered to shed some technology holdings. The selling sentiment was carried over into early Asian trading hours, dragging down the Tokyo stock market's benchmark Nikkei 225 average to below 17,000 marks by 0041 GMT. March 4, 1998/FOOLWIRE/ -- Dell Computer (Nasdaq: DELL) traded down approximately $7 to $132 in after-hours trading after key supplier Intel (Nasdaq: INTC) said it expects to report Q1 revenues of approximately $5.85 billion, down 10% sequentially from Q4 1997 and the first fiscal quarter last year. Intel said its turns business from OEM (original equipment manufacturer) customers has been weaker than expected. Revenues from turns mean orders that are shipped immediately. This indicates that inventory may be a little more full than the industry expects, but meshes well with the guidance on pricing that Compaq (NYSE: CPQ) provided at the recent Merrill Lynch conference. The other part of the equation has to do with Dell pushing back inventory on supplier Intel, as Dell's days' sales of inventory decreased rapidly last quarter. In all, Intel made the important point that this is an inventory problem and not an end market problem. The end market can still grow in the middle of the 15-20% yearly range experienced in recent years while the suppliers to that market can experience periodic backups in matching production with that growth in demand. Intel fell more than $10 to $76 in after-hours trading.