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 : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Barry Grossman who wrote (64366)	9/10/1998 9:26:00 PM
From: Barry Grossman	Read Replies (1) \| Respond to of 186894

Thread - an interesting question and speculation from another thread To this question: exchange2000.com I wonder how their sales could be better when economies around the world are worsening? This reply: exchange2000.com Thomas: Yes the INTC news is HUGE! <g> I think there is inventory replenishment here + maybe INTC's new low end processors may be gaining back market share. I do not know for sure. [INTC is a monopoly (duh!) so the rules there are somewhat different compared to other semis.] Just speculating on causes: (a) if it is inventory refill and not a pick up in demand that is still a good thing because a 10% increase in revenues should create a sizeable change in earnings estimates. (b) it is all a seasonal effect - unlikely the increase to around 6.5 billion seems more than just a seasonal pop. (c) it is pick up in user demand - fill up on all the semis then <g> since the stocks are anticipating a global decline in the economies and any change in sentiment will rush "traders" back into the stocks creating what should be very nice fat returns over the next week... (d) INTC's low end processors winning back market share - good for INTC but not a big deal I guess if the gain here in overall demand is negated by losses at other companies... (of course INTC suppliers will gain!) My sense is that it is mostly (a) (with a bit of (b) and (d)) though I am willing to be persuaded that (c) is a real possibility since last q may have been the low point in bookings over this year and next. Again as you imply I am not convinced entirely of (c) because the economies around the world have been crushed. Then again ADI (whom I see as a reasonably diversified proxy for the more mundane electronic things in our day to day lives) last q did say (ending Aug 1 for them) that they thought the q ending Aug 1 was the low point. It actually does make sense to me though I would have liked to see some confirmation from them by now. The stock group that should really be happy is the semi-equips. There are many semi-equips today that won't survive if the semis don't increase spending soon.

To: Barry Grossman who wrote (64366)	9/10/1998 9:28:00 PM
From: Barry Grossman	Respond to of 186894

09/10 17:58 Dell <DELL.O> says Q3 "great" despite world's woes DALLAS, Sept 10 (Reuters) - Dell Computer Corp <DELL.O> Chairman Michael Dell said on Thursday his company was having a "great" third quarter in spite of economic and financial turmoil around the world. "The third quarter is going great and there is no change in our outlook from what we said at the end of the second quarter," Dell told reporters in Dallas, where he spoke at an economic forum. He did not give further details, but said he did not expect economic crisis in Asia and turmoil in the world's financial markets to drag down his company's growth. "It is true that some of these markets might be in a period of economic contraction, but that doesn't mean Dell can't grow even in that period," he said. Dell has consistently exceeded expectations for its growth and its founder and chief executive said Thursday he expected the company to continue to outpace the market and pick up market share from its competitors. He said the industry has shown annual percentage growth rates in the mid-teens and that those rates should continue for at least the next three to five years. "I don't think the personal computer industry is impervious to economic turmoil but I think companies and organizations are using computers as a way of getting ahead and driving productivity so in some senses this is not discretionary spending," he said. Dell also said consumer demand was being fuelled by the increasing popularity of the internet, a steady decline in the price of components and new technological advances. "When you get new features and functions, computing finds its way into places it has never been before: small and mid-sized business, emerging markets, countries that haven't had as much technology as they might have in the future," he said.