Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: StockMan who wrote (29561)	3/5/1998 1:36:00 PM
From: Jim McMannis	Read Replies (1) \| Respond to of 1572507

Stocky, I told you I own about 60 stocks and MFs. A few are tech stocks...you know some of them... Hey, I own GM, and it just made an all time high recently...so what. My specialty is really gold and nat resource stocks but I like to hang around on the tech stock BBs because it fascinates me...I learn a lot and have fun too... To tell you the truth, I'm surprised that the market has weathered the Intel problem so well today...There is a silver lining in every bad apple...Maybe the Markets see Intels shortfall as an indication that the economy is not heating up and rates will stay down...this is good for stocks in general... You need to be a bottoms up investor... Jim

To: StockMan who wrote (29561)	3/5/1998 1:38:00 PM
From: Maverick	Respond to of 1572507

Asia & lower ASPs weren't culprit, part II Intel specifically discounted the two most likely culprits behind a shortfall -- the troubles in Asia and the growing popularity of low-cost PCs powered by processors from Advanced Micro Devices Inc. and National Semiconductor Inc. subsidiary Cyrix Corp. Company spokesman Howard High said Intel had accounted for reduced demand in Asia in its previous projections, and that the company hadn't seen a marked decline in the average selling price of its chips -- which would be expected if lower-cost products were edging out the high end. Buying fewer chips About all Intel knows for sure, High said, is that computer companies are buying far fewer chips than Intel expected. Most of the shortfall is occurring in Europe and North America, he added. Industry observers estimated Wednesday that Intel will end up selling 2.5 million fewer chips than previously expected this quarter, which ends March 31. Intel's announcement came after the stock market closed, but there were early signs that it will affect share prices throughout the industry in coming days. Stocks hammered In after-market trading, Intel's stock dropped by as much as $10 to $76 a share, financial traders said. Other companies also dropped steeply: Dell Computer Corp. lost as much as $9 per share after hours -- after gaining $7.94 at the close of market -- and even IBM went down by about $3 per share. After-hours trading can be misleading because the volumes traded are extremely small. Nevertheless, they do provide an early read on how late afternoon announcements will affect share prices. Intel's announcement reinforced some other recent pessimistic signs. For instance, attendees at Merrill Lynch & Co.'s high-tech conference in New York this week were told by analyst Tom Kurlak that sales of semiconductor products would fall substantially this year as demand slowed. Compaq Computer Corp. added to the dire predictions emanating from that conference by noting that the pressure to lower prices in North America was stronger than anticipated. That statement helped drive down the prices of a number of computer company stocks earlier this week.