This is what killed NASD,, DELL is 4 points ,, MSFT and INTC 10 points ..
All up after hours by the way ,,
Dell falls as analyst sees hints of tech softness
NEW YORK, Oct 20 (Reuters) - Cautionary comments on the overall outlook for information technology spending by an analyst at investment firm Piper Jaffray sent shares of Dell Computer Corp <DELL.O> lower in afternoon trading on Tuesday.
Traders cited comments from Piper Jaffray analyst Ashok Kumar as triggering heavy late selling in Dell. A representative in Kumar's office, however, said the analyst made only broad comments about the industry and left unchanged his investment guidance and earnings estimates on Dell.
"(Kumar) did make a macro-call on IT spending and that we are getting indications of weakness in the IT spending cycle," said Paul Mansky, Kumar's assistance at Piper Jaffray.
For its part, Dell Computer, which has posted the strongest and steadiest growth among personal computer makers, said after Tuesday's close that it sees no weakness in its market and that demand for computers remained strong.
Dell shares ended the session down 3-15/16 to 53-5/16 on volume of 39.3 million shares.
17:49 10-20-98
Dell Founder Sells 4 Million Shares: Insider Focus
Round Rock, Texas, Oct. 19 (Bloomberg) -- Dell Computer Corp. founder and Chief Executive Michael Dell sold 4 million shares last month, or about 2 percent of his holdings, for $257.2 million, days before the stock reached a record.
Eight other executives and directors also sold as the shares approached their high of 69 1/4 on Sept. 29, according to the Washington Service, which tracks insider buying and selling.
Since then, shares of the biggest direct seller of personal computers have fallen 17 percent amid concern that global economic problems could crimp sales growth.
''This is unusual for what we've seen in the past. People should be a bit concerned,'' said Paul Elliott, research analyst at CDA Investnet, which tracks insider buying and selling. Dell, who also is chairman of the Round Rock, Texas-based company, has sold shares on a regular basis for the past several quarters, and still owns more than 15 percent of the company.
Dell Computer has been riding a wave of robust demand and low costs that have helped it escape fierce price cutting by rivals like top PC maker Compaq Computer Corp. Dell's sales and earnings have surged more than 50 percent for the past several quarters.
Other computer makers have suffered as excess inventory at dealers and distributors, coupled with plummeting prices ate into profits in the first half. Dell, by contrast, has virtually no inventory because it builds machines as orders come in, which means it can pass along component cost savings quickly.
Shares of Dell rose 9/16 to 57 1/4 on trading of 18.5 million shares, making them the most fourth most active in U.S. markets.
More Selling
Dell, 33, who founded the computer maker in his college dorm room at the University of Texas at Austin in 1984, still owns 200 million shares of Dell. He sold at prices ranging from $62.00 to $65.69, according to the Washington Service.
What's interesting is that so many other executives also sold shares, CDA Investnet's Elliott said. Some cut their holdings by more than half. ''Rather than just Michael Dell selling, the sales are spreading out,'' he said.
Dell told about 150 analysts at a meeting at the company's headquarters in Round Rock, Texas, on Sept. 25 that the economic crisis in Asia won't impede sales growth, helping send shares toward their high.
Dell's Asian sales rose 35 percent in the first half, even as the overall Asian PC market fell 9 percent.
Dell gets about 31 percent of its sales from overseas. Compaq and International Business Machines Corp. both get more than half of their sales from outside the U.S.
Sellers
Joseph Marengi, senior vice president, sold 17,702 shares from Sept. 8 to Sept. 29 for $58.50 to $68.13, bringing his holdings to 137,916 shares, according to the Washington Service. Michael Lambert, senior vice president of enterprise systems, sold 100,174 shares on Sept. 22 and Sept. 23 for $60.00 to $62.00.
Rosendo Parra, a vice president, sold 82,560 shares on Sept. 30 for $65.63 to $66.06, bringing his holdings to 354,706 shares. Charles Saunders, vice president and president of Dell Japan, sold 10,000 shares on Sept. 15 for $58.88 to $59.00.
James Schneider, vice president of finance, sold 150,000 shares between Sept. 23 and Sept. 28 for $62.00 to $68.38, bringing his holdings to 468,702 shares. Alex Smith, vice president and treasurer, sold 40,000 shares on Sept. 16 at $60.00. He now owns 203,684 shares.
Two directors also sold shares. Claudine Malone sold 220,800 shares from Sept. 9 to Sept. 11 for $55.06 to $60.00. She now owns 177,600 shares. Paul Hirschbiel sold 15,000 on Sept. 15 at $59.19, bringing his holdings to 186,048 shares.
Dell has sold shares twice in recent months. In May he sold 1.25 million shares and in August he sold 2.1 million shares, both before a stock split that took effect Sept. 8.
17:02:32 10/19/1998
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This is the DELL response..
Dell <DELL.O> says computer demand is strong
ROUND ROCK, Texas, Oct 20 (Reuters) - Demand for personal computers is strong and is expected to stay that way, a Dell Computer Corp. spokesman said Tuesday.
"The environment is the same as the one we characterized at our analyst meeting (on Sept. 25) -- industry demand is solid and we expect it will continue that way into the foreseeable future," Dell spokesman T.R. Reed told Reuters.
He said the company sees industry-wide demand growing around 15 percent annually in the coming years, with Dell growing faster because of its direct sales model.
Dell shares fell 3 15/16 to 53 5/16 on Tuesday, apparently on rumors that an analyst at Piper Jaffray had downgraded Dell stock.
Reed said the company knew of neither a reason for the decline nor a change in any analyst's recommendation.
A spokesman at Piper Jaffray said the ratings and earnings estimates for Dell were unchanged, but that there were signs of weaknesses in technology spending.
18:05 10-20-98 |
