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To: JMD who wrote (10802)	3/11/1998 2:33:00 PM
From: shane forbes	Respond to of 25814

Mike: I remember that post well! I was going to make a comment about that post in 10800 but being the gentlemanly sort I just passed! :-))) Yes thou wieldest awesome power. Like I said earlier (but w/o #s) these computer thingies follow a very definite and predictable cycle: separate product (3-6 months), high-end (6 more months), mainstream(6 more months), business (6 more months). Though I suspect with DVD we'll see a contraction in these time periods to maybe 3-4 months each for the 6's. Shane.

To: JMD who wrote (10802)	3/11/1998 3:42:00 PM
From: shane forbes	Read Replies (2) \| Respond to of 25814

Mike: Techs may have gone up today because of this. Though one could argue this is passe and should not matter: ----- BOSTON, Massachusetts (March 11) - Fidelity Investments said Wednesday that its Magellan Fund raised its holdings in technology and health care stocks in January, but cut assets invested in finance and energy shares. The massive fund raised the percentage of its assets invested in tech stocks to 15.1 percent as of Jan. 31, compared with 12.9 percent Dec. 31. The fund also raised its total investments in equities to 95.1 percent of assets at the end of January from 93.7 percent at the end of December, according to the Fidelity's monthly Mutual Fund Guide, released Wednesday. Magellan's holdings in cash and short-term investments were cut to 4.9 percent of assets at the end of January from 6.3 percent at the end of December, Fidelity said. The fund raised the percentage of its assets invested in health-related stocks to 11.6 percent from 10.5 percent Dec. 31, while cutting its holdings in financial stocks to 12.8 percent from 13.1 percent and lowering energy-related stocks to 8.6 percent from 10.2 percent. Magellan, the largest private fund in the United States, said its percentage of holdings in most other industry sectors remained unchanged in January. Magellan's assets rose to $68.7 billion at the end of January from $64 billion at the end of December, boosted by a total return of 1.08 percent in January compared with 1.11 percent for the Standard & Poor's index of 500 stocks. --- There is also a story out about CPQ addressing its problems etc etc. This again will assuage the PC guys and by implication the semis at least for now: --- TOKYO, Japan (March 11) - Compaq Computer Corp chief executive officer Eckhard Pfeiffer said on Wednesday the company was dealing rapidly and proactively with the problems it faced and hoped to return to growth. ''We're moving on with action that will, if successful, help us to continue our growth,'' Pfeiffer told a news conference. Compaq shocked the markets last Friday when it said it expected its sales for the first quarter to be flat from year ago levels and that it would only break even -- an outlook much worse than what Wall Street had been expecting. ''Compaq has been growing at a unit growth rate of over 40 percent,'' Pfeiffer said. ''Then we face certain bottlenecks like distribution that may not be growing as fast.'' He attributed the abrupt halt in the company's growth this quarter to a drop in demand, declining prices and factors relating to its distribution pipeline through solution channels. He said that Compaq, the world's largest manufacturer of personal computers, would address its problems through measures such as pricing promotions and that it was implementing an inventory model for the company by product category. ''What we've set now is a goal to be fully on the model by mid-year,'' he said. He did not provide details, however, regarding the company's inventory levels or targets. Turning to the personal computer market, he said slower growth globally was expected this year than in the past two or three years, while signals for the first quarter were mixed. ''It's very competitive in the U.S., which is an indicator that there's probably more product pushing in the market than demand is eating up,'' he said. He was optimistic, however, about the future. ''Longer term I believe we will see continued growth, probably in the 10 to 20 percent range,'' he said. In Asia excluding Japan, he said, ''Instead of continued 15 to 20 percent growth, we're now seeing flat demand if possibly not slightly down.'' He added similar trends were apparent in Japan. The future of the market in the region, he said, would depend largely on developments with the Asian financial crisis. He added that he saw continued good growth in Europe. Pfeiffer also predicted that Compaq would boost its market share in Japan, the world's second-largest personal computer market. Despite its status as world leader, Compaq has made little headway in Japan's PC market, where it lags well behind domestic rivals. Pfeiffer said Compaq's merger last year with Tandem Computers had substantially increased its sales coverage and service and support capabilities in Japan. ''All of that will have a positive impact on our market share,'' he said. REUTERS Reut03:16 03-11-98 Copyright 1998 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. ---- Shane.