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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: T.R. who wrote (58042)	8/13/1998 11:51:00 AM
From: Mohan Marette	Read Replies (1) \| Respond to of 176387

Chip gains on strong PC sales. I keep re-reading these two paragraphs and I come away with the same dribble...am I missing something here? I think the reporter might have had problem articulating his thoughts in that article. Most likely he was giving autos and furniture as examples of durable goods while in fact the majority of the decrease in durables came from autos so in all likelihood the 1.4% decrease mostly came from autos as in the following paragraph he/she says furniture sales was up. ================================================== Now here is some good news for a change but note some analysts are of the opinion that in case of a slow down during the second half we may have the same inventory problems as experienced by CPQ and others during 97,this of course has nothing to do with Dell if anything Dell should fair better than the other channel-guys. From:MarketWatch Chips gain on comments U.S. semiconductor stocks, however, rallied as analysts issued more positive comments about the chip industry. Donaldson Lufkin & Jenrette analyst Charles Boucher said semiconductor fundamentals have strengthened during July and August, especially for PC components. Boucher said Intel and AMD have seen improved unit demand and slightly firmer microprocessor prices. While noting marginal increases in DRAM prices, he also said, however, that an important factor would be PC sales to consumers and other customers who buy computers from distributors. Adding to the bullish comments, Mark Edelstone, chip analyst at Morgan Stanley said a recovery starting in May is continuing amid solid sales of PCs. PC chipmakers thrived on the news as Intel (INTC) rose 1 1/8 to 86 3/4, AMD (AMD) climbed 3/16 to 18 13/16 and Micron (MU) added 5/8 to 33 7/8. Programmable logic makers also surged, as Altera (ALTR) rose 1 1/8 to 40 5/8, Xilinx (XLNX) rose 1 1/2 to 42 5/8 and Linear Technology (LLTC) gained 2 1/8 to 64 5/8. Chip equipment makers advanced as Applied Materials (AMAT) rose 7/8 to 33, KLA-Tencor (KLAC) gained 7/16 to 29 15/16, Uniphase (UNPH) added 2 1/4 to 59 3/8. See Tech Report. Not all analysts, however, are convinced chip stocks are out of the woods. C.B. Lee, technology analyst for Sutro & Co., is concerned that perceived increases in demand for chips and PCs could be inaccurate. Lee reminds investors PC industry inventory levels could become unmanageable again if fall and winter season sales don't meet lofty expectations. "The pickup in demand we've seen is mostly seasonal, that is to say, PC makers are increasing inventory in anticipation of good back-to-school and Christmas sales," Lee said. "But I have yet to see a meaningful increase in end-user demand. I prefer to wait until the first or second week in December to see whether that demand is there."