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.

Technology Stocks : COMS & the Ghost of USRX w/ other STUFF -- Ignore unavailable to you. Want to Upgrade?

To: Moonray who wrote (16873)	7/31/1998 5:17:00 PM
From: joe	Respond to of 22053

>>The winter's warmth looks a long way off as we sit here in COMS, taking the summer's heat.<< True...I was just trying to see why you were "disappointed" so far. I think the fundamentals are more or less where we figured they'd be about 3-4 months ago. The problem is the market has decided to devalue COMS. Hopefully, when we pass the next quarter's test we will get some kind of good luck (we're due some right?...it's been a long time) and it could bump us up a little higher on the tread mill. Also, some of the earnings estimates have been lowered, I think, due to expectations of weakening economic growth. Any time analysts decide it's convenient for them to move up future eps, they can do so easily by changing their economic forecasts.

To: Moonray who wrote (16873)	7/31/1998 6:02:00 PM
From: W.F.Rakecky	Read Replies (1) \| Respond to of 22053

......Moonray!!....where be Scrapps? Conspicuous by absence.

To: Moonray who wrote (16873)	8/3/1998 4:39:00 AM
From: djane	Read Replies (1) \| Respond to of 22053

Thought you might enjoy this Rockwell letter to the LA Times... latimes.com Rockwell Is Not in a Hard Place Sunday, August 2, 1998 We understand that any corporation going through a transformation accompanied by difficult earnings performance may be the subject of criticism. However, before the readers of the Los Angeles Times draw any conclusions about Rockwell's outlook, we believe that it's important to provide a fuller and more accurate picture about the company than what was presented in "Not Tempeted by Apple, and Is Rockwell in a Hard Place?" [Stock Exchange, July 28]. Market leadership: Your readers should know that Rockwell's $5-billion automation and $2-billion avionics businesses are world-class organizations. In automation, Rockwell, with our leading Allen-Bradley and Reliance Electric brands, continues to be the leading supplier in North America, a position we have held for the last several decades. In avionics, Rockwell Collins is one of the top two firms in this global industry and has always been the most profitable company in this market. Operating performance: Yes, we have experienced selected performance issues in our automation business, notably in the motors segment and in certain markets affected by the current Asian financial crisis. This is a short-term anomaly, which is being corrected as we speak, and even with these issues, margins are still a very healthy 12.9%, near the top of the industry. At Collins, during the last quarter we wrote off a U.S. government contract loss and we changed the accounting methodology. These were one-time events as this business is growing at nearly a 20% annual growth rate and is not hurting as you suggested. Strategy: Rockwell has a clear focus on being the best electronics controls and communications company in the world. We believe implementation of our strategies to spin off our Semiconductor Systems business and the restructuring we announced on June 29 to reduce costs are important steps in achieving that plan. As we have told our investors, we believe that Rockwell's earnings per share from continuing operations (before restructuring and other special charges) will be about $2.30 in fiscal 1998 and in 1999, earnings will improve significantly to at least $2.90 per share. In addition, we are confident that Rockwell's Semiconductor business, which will be spun off in December, will be a successful stand-alone company. When all is said and done, what matters is how Rockwell performs, and I am committed to delivering the results our shareowners have come to expect from our great company. DON H. DAVIS Jr. Chairman of the Board and Chief Executive Rockwell International Corp. Copyright 1998 Los Angeles Times. All Rights Reserved Search the archives of the Los Angeles Times for similar stories. You will not be charged to look for stories, only to retrieve one.