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Technology Stocks : Intel Strategy for Achieving Wealth and Off Topic -- Ignore unavailable to you. Want to Upgrade?

To: Sean Whitehead who wrote (18150)	3/5/1998 11:03:00 AM
From: Ann Janssen	Read Replies (1) \| Respond to of 27012

Sean, My crystal ball is in the shop, but here is what briefing is saying, see below for more. "Retest of 70 a certainty... Penetration of this floor would position stock for move back to the 62 area over the intermediate-term... " You made a smart move by getting rid of your options when you did. Everyone says to keep the emotions out of your investing, but going with your gut feelings isn't all that bad. You can at least sleep at night and sometimes you can make decent decisions that way. Sorry Sonny, There's not much good news to report and I'll shut up about Kurlack now I guess he has excellent insider information or as Dom says he's Psychic. Hope you have a good day. Take Care Ann From Briefing.com Led by strong gains in Dell, Sun Micro, Texas Instruments, Micron, 3Com and Intel, techs snapped back a bit in Wednesday's trading... But gains will disappear quickly as Intel issued an earnings warning after the close... Chip giant noted that weaker than expected demand from PC makers to result in 10% sequential drop in revenues, dip in gross margins to 53% (give or take a few percentage points) and earnings below street forecast of $0.93... Though the company didn't provide a target earnings figure, Briefing suspects street will adjust estimates down by as much as 20%... Also noted that R&D expenses for the quarter will be up 3% and that company will take a $165 mln charge related to Chips & Technologies merger. Strong consumer demand for sub-$1000 PCs finally catching up to Intel, which is a late entrant in this fast-growing segment of the computer marketplace... Problems not solely result of shift toward cheap PCs, as company noted that slowdown occurred across all geographies and all products... Already skittish market will overreact to bad news and take entire sector down and down sharply... Want proof, Intel (-10 points),DELL, TXN, MU and CPQ are all down big in after hours trading... Since mid-January we have maintained that the tech sector had a 4- to 6-wk window of opportunity for strong gains based on a lack of bad news and impressive relative strength for the industry leaders... Intel's warning slammed shut that window... Traders must now ask whether Intel will do to the market in 1998 what UAL did in 1989-90? It's a very real possibility. Computer Systems & Peripherals Brief:One day after gapping lower, Dell skyrocketed nearly 8 points... No news, just "bargain" hunting... Apple Computer jumped more than one point and came within whisker of 25 price target Briefing established recently when it profiled company as a trading buy... Company expected to announce new CEO shortly... SCI Systems slumped 2 points after Lehman downgraded the stock to outperform from buy... Compaq downgraded again, this time by AG Edwards... AGE lowered rating to maintain from accumulate... IBM won a 10yr contract for computer services from GE worth up to $2 bln... Read-Rite rallied 1/2 point after announcing that earnings would fall shy of estimates and that industry woes would continue for next several quarters... Maybe there's hope for Intel shareholders yet... After Intel's warning, PC markers down sharply in after hours trading... DELL down by over 5 points. Semiconductor: Brief: Merrill's Tom Kurlack comes out looking pretty good, as warnings from Intel and Advanced Micro support his contention of weakening demand... As for our comment that Intel had fallen too far over past week given no change in fundamentals... Well, fundamentals have now changed, and not for the better... Company's announcement offered nothing for bulls to hang their hat on... Consequently, stock will get creamed... It's already down 10 in overnight trading... Even if company manages to stage comeback from the 76 area, gains likely to be short-lived as traders adopt a show-me attitude regarding company's future earnings... Rash of ratings/earnings downgrades will also keep company on defensive... Retest of 70 a certainty... Penetration of this floor would position stock for move back to the 62 area over the intermediate-term... For more on Intel, see Briefing's Stock Brief... Rest of chip sector to take a beating based on Intel warning... Advanced Micro, National Semi, Texas Instruments, Micron and Lattice to be among group's biggest losers.