Special "Computer Hardware" Edition of The Wall Street Transcript
NEW YORK--(BUSINESS WIRE)--Dec. 28, 1998--Leading analysts examine the Computer Hardware industry in the just-published edition of The Wall Street Transcript, a vital review for investors and companies.
1) An in-depth roundtable forum featuring two prominent analysts: Daniel Kunstler of J.P. Morgan and James Poyner of CIBC Oppenheimer. The panel discusses systems integration, thin client systems, Unix vs. NT2000, Y2K compliance, management performance, new products like the Xeon processor, the Compaq/DEC deal, and commoditization. Because systems inter-operate now, Poyner asserts, "We're finally closing in on the Nirvana they've talked about for 15 years of a truly open, transparent access across any kind of computer. The Internet's the example of that, but what it means is that hardware prices are going to go to hell in a handbasket." Responding to forecasts of increased hardware sales due to Y2K fears, Kunstler retorts, "I would venture to speculate that the people that have not bought Year 2000 compliant hardware yet are probably those who are the closest to their wallets, and probably those who are going to be the most price sensitive, particularly if you look at it internationally."
Regarding the impact of falling PC prices, Poyner states, "This ASP (average selling price) phenomenon is a lethal trend in the industry, particularly if you're not diverse, if you're not selling something other than just PCs here, because increasingly you're going to have to take somebody else's market share to grow revenue."
Other topics addressed by this distinguished panel: M&A trends, share repurchase programs, stock valuations, business models, competition for market share, falling margins, and the future outlook for the sector.
The panel offers several investment recommendations, including: IBM (NYSE:IBM), Sun Microsystems (Nasdaq:SUNW), and RadiSys (Nasdaq:RSYS), about which Kunstler states, "I follow a small company called RadiSys, which I have a long term buy on, which uses PC technology in the embedded market, and it's probably the best in that business right now. It's suffering because of Asia, but as Asia improves it will probably improve as well, and it's got a good market position."
2) An "Off-the-Record" survey of analysts and industry experts, who praise and/or criticize 10 Computer Hardware companies and managements, includes several recommendations and a few admonishments. High marks for Steve Jobs at Apple Computer (Nasdaq:AAPL) because "he stabilized the business and fused new life into the company. Give him credit for that marketing campaign and for the IMAC."
Praise for Michael Dell of Dell Computer (Nasdaq:DELL) as "not your average billionaire. He's very approachable, and is a good listener, and knows how to attract the right people to the company. The management team supporting Dell is among the best in any industry."
But, another computer hardware management team falls short with an investment veteran who says, "Management has gone from the doghouse to at least sticking their head out of the doghouse."
Other companies mentioned in this special 30-page Computer Hardware section include: Cisco (Nasdaq:CSCO), Compaq (NYSE:CPQ), Data General (NYSE:DGN), EMC (NYSE:EMC), Gateway 2000 (NYSE:GTW), Hewlett-Packard (NYSE:HWP), Intel (Nasdaq:INTC), Maxtor (Nasdaq:MXTR), Micron Electronics (Nasdaq:MUEI), Microsoft (Nasdaq:MSFT), Network Computing Devices (Nasdaq:NCDI), Olivetti ADR (OTC:OLIVY), Quantum (Nasdaq:QNTM), Seagate (NYSE:SEG), Silicon Graphics (NYSE:SGI), Smart Modular Technologies (Nasdaq:SMOD), Tektronix (NYSE:TEK), Texas Instruments (TXNNYSE:), Unisys (NYSE:UIS), Western (NYSE:WDC), and Xerox (NYSE:XRX).
For information on how to obtain a copy of this issue, see twst.com or call 212-952-7433. The Wall Street Transcript does not endorse the views of any interviewee nor does it make stock recommendations.
The Wall Street Transcript is a premier weekly investment publication serving serious long-term investors for over 35 years. The Transcript publishes industry roundtables and interviews with Wall Street analysts, money managers, and company CEOs, and is read by top money managers, brokers, and individual investors.
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