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 : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Senator949 who wrote (35418)	10/27/1998 3:00:00 PM
From: Elwood P. Dowd	Respond to of 97611

Technology earnings check-up Better-than-expected, but tough year ahead By Binti Harvey, CBS MarketWatch Last Update: 2:44 PM ET Oct 27, 1998 NewsWatch LOS ANGELES (CBS.MW) -- Investors in technology stocks are breathing sighs of relief as earnings season draws to a close. Instead of the anticipated widespread carnage, many technology companies met or beat estimates in the third quarter. However, a celebration may be premature. Analysts say technology companies owed their strong performances more to lowered expectations than solid execution, and growth was virtually nonexistent. Add to that concerns about a global recession and reduced corporate capital spending in 1999, and investors may have the recipe for even more caution toward the end of the year. "The majors in essence reported better than expected upside surprises, but the guidance is: Don't up your numbers, don't get too excited," said Scott Bleier, chief investment strategist for Prime Charter Ltd. Bleier attributes most of the strength in the period to companies' guidance of estimates. "The most important factor this quarter was the managing of expectations from companies themselves," Bleier said. "Most companies beat expectations, but in terms of absolute growth, the results were lacking," said William Meehan, investment strategist at Cantor Fitzgerald. Semiconductor stocks provided the greatest upside surprises, as Wall Street had expected miserable results across the board. Intel Corp. (INTC), Advanced Micro Devices Inc. (AMD) and Motorola Inc. (MOT) all posted better-than-expected results. Analysts said the group benefited from PC makers' efforts to rebuild channel inventories after a fire sale to shrink oversupply in the first half of the year. "Expectations were substantially lowered throughout the quarter and there were decent year-over-year comparisons caused by weakness in Asia at this time last year," said Meehan. Among PC makers, Compaq Computer Corp. (CPQ), IBM Corp. (IBM) and Gateway Inc. (GTW) also surpassed expectations. However, renewed fears about inventory levels may depress the stocks in 1999. "PC spending was reduced but there were no tremendous disappointments in the quarter," said Bleier. "I think we're still seeing decent business in PCs." "The market could fall apart in the first and second quarter next year if this turns out to be a seasonal upturn with no follow-up," said Ken Perlman, analyst at CIBC Oppenheimer. Telecommunications and network equipment makers posted the most solid results, however, as 60 percent of the industry reported earnings in line with estimates, according to Thomson Kernaghan & Co. analyst Richard Woo. Lucent (LU), Cisco (CSCO), Ascend (ASND) and Northern Telecom Ltd. (NT) all swept past analysts' expectations. "The third quarter was quite good," Woo said. "Estimates weren't revised and I expect to continue to see top-line growth in the 20 to 40 percent range depending on the equipment they sell." While technology stocks outperformed forecasts across all industries, concerns about recession and decreased corporate spending continues to cast a cloud over 1999 outlooks. "There will continue to be uncertainty and conditions abroad are still a big question," said Bleier. "As we move forward, the focus will be on whether we're heading for a recession and how big it will be." "The large-cap stocks are far from cheap, and a slowdown will make them even more expensive to own," said Meehan. "I think the network universe has the greatest hope and optimism, while internet stocks continue to be the most risky investments." "Amid this uncertainty, there will be a continued desire for safety, liquidity and earnings visibility and the companies that can come through will see margin expansion and those that can't deliver will lag."

To: Senator949 who wrote (35418)	10/27/1998 3:44:00 PM
From: Windseye	Read Replies (2) \| Respond to of 97611

Robin, and all, My wild A$$ guess as to what's happening is that we are witnessing the most grandiose snookering of all time... WIndows NT 5.0 is the heir apparent to the WIn XX line, as well as the NT line, and what do you guess that Win 2000 will be so thoroughly Internet Explorer that the term Internet Explorer will be dropped in favor of WIn 2000 with an obvious transparent extension from the desktop, to the LAN, to the WAN, to the WWW? In other words accessing the web will truly be an INTEGRAL, nay the PARAMOUNT, function of the operating system! The desktop will be thought of as a local foci of the WEB. And then where does the government's case go? How can MSFT possibly strip IE out of Windows when it no longer exists as a "separate" function! It may be time to bet the farm on Gates... (actually I wouldn't bet the dog house on him, just because his lust for power and control seems a mite excessive, who knows when it would turn on me and swallow my dog house.) Doug