The BEST -S&P 500 Scorecard for 1998-DELL Top Performer for 3rd Year in a row.
Hi Voltaire:
I am glad to hear you are getting this good 'feeling' about 1999,strangely enough so am I. As for predictions,well I am not much of a 'predictor' since most of my predictions are usually proven wrong so I figured why bother, however I will have you know I am an opinionated ass,hope that counts for something.<vbg>
Now here is something interesting about DELL and I hope DELL does it again in 1999.
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S&P 500 Scorecard for 1998: Dell Top Performer for Third Year
New York, Dec. 31 (Bloomberg) -- The following table shows the best-performing and worst-performing stocks in the Standard & Poor's 500 index for 1998.
Dell Computer Corp. led the S&P 500 for the third straight year. The rankings would be different if the index included Internet companies, whose high-flying shares have been among the best performers this year. S&P will replace Venator Group Inc. with America Online Inc., the No. 1 online service, as trading begins in 1999.
BEST PERFORMING
Dell Computer Corp. +248.5%
The No. 3 personal-computer maker has been (DELL, 73 3/16) the best performing stock in the S&P 500 for the past three years. It's earnings have increased about 50 percent a year for the past three years as it benefited from selling directly to its customers.
Apple Computer Inc. +211.9%
Co-founder Steve Jobs returned to the No. 7 (AAPL, 40 15/16) personal computer-maker in Sept. 1997. Since then Apple introduced several popular products, including high-powered Macintosh computers and the iMac, which was the best-selling PC in November. Apple was the S&P 500's fifth-worst performer in 1996, and 12th-worst last year.
EMC Corp. +209.8%
The world's largest maker of data-storage (EMC, 85) systems made the S&P 500 Top 10 for the second time in three years. EMC sales have almost quadrupled in the past five years with an aggressive sales force promoting its Symmetrix storage devices and its storage-enhancing software. It was the sixth-bestperformer in 1996.
Lucent Technologies +175.4%
The largest U.S. phone-equipment maker has Inc. beaten profit estimates in all 11 quarters (LU, 109 15/16) that it's been independent from former parent AT&T Corp. Using strong U.S. sales to finance its attack on overseas markets, the
company's market capitalization is now larger than AT&T's.
Ascend +168.4%
The No. 4 network-equipment has benefited Communications Inc. from the growing use of the Internet. Demand (ASND, 65 3/4) for the company's products, which help carry voice, data, and video on single networks,has soared as phone companies and businesses try to handle the increasing data traffic clogging their networks. The jump in Ascend's stock price prompted Chief Executive Mory Ejabat last month to sell 100,000 shares, his entire stake in the company, for a profit of about $4.35 million. Last year it was the worst-performer in the index.
Cisco Systems Inc. +149.7%
The top computer-networking company expanded (CSCO, 92 13/16) into the telecommunications market with equipment that helps phone companies handle their mushrooming data traffic. The company also makes the equipment that routes most of the data sent between computers on the Internet and is becoming popular for delivering voice, data and video over phone networks. The stock's also gotten a lift as Internet companies skyrocket.
Providian Financial +149.0%
The largest credit card lender to people Corp. with poor credit ratings has boosted its (PVN, 75) customer base and profits. It's expected to show a 68 percent increase in fourth-quarter earnings. Providian's benefiting from steady economic growth and increased spending by consumers.
Unisys Corp. +148.2
After years of losses in its mainframe (UIS, 34 7/16) business, Unisys began transforming itself from a computer maker into a services company when Lawrence Weinbach became chief executive in 1997. It has since benefited from the trend for companies to contract out the jobs of installing and monitoring their computer networks. Unisys ranked 10th last year.
Novell Inc. +141.7
The No. 2 networking-software maker has (NOVL, 18 1/8) struggled under assault from larger rival Microsoft Corp. Chief Executive Eric Schmidt, who took over in April 1997, responded with more Internet-based products and added sought-after programs that control and monitor data. Cisco Systems Inc. and Lucent Technologies Inc. both said they will make their equipment work with a new Novell product, while Northern Telecom Ltd. said it will license the software, giving Novell credibility it lacked before Schmidt joined.Last year, it was the 31st-worst performer in the index.
Gap Inc. +138.1
Robust sales and earnings helped push the (GPS, 56 1/8) clothing retailer's shares to a record high on Tuesday. Gap's line of khaki pants and casual clothes thrived on ''Casual Fridays,'' the trend toward less formal work environments. The stock was the 39th-best performer in the index last year.
WORST PERFORMING
Harnischfeger Inc. -71.2%
The maker of mining and paper-processing (HPH, 10 3/16) machinery has seen demand for its equipment tumble, thanks to the economic crisis in Asia, where several major customers put new projects on hold and canceled orders. Sales have fallen 29 percent in the last two years, and the company's shares hit a five- year low in October. It was the 25th worst-performer last year.
Ikon Office -69.6%
The second-largest copier supplier is Solutions Inc. struggling to compete with a revitalized (IKN, 8 9/16) Xerox Corp., the market leader. Ikon profits have also been squeezed by the costs of digesting some of the more than 100 companies it's acquired since 1996.
Venator Group Inc. -68.4%
The former Woolworth Corp. is being replaced (Z, 6 1/2) in the S&P 500 index by online service America Online Inc. The retailer's shares
this week reached their lowest price in almost 16 years. The company's line of sweatpants and sneakers have been hurt by the trend towards casual shoes and khakis.
Rowan Cos. -67.2%
The oil service company has seen demand for (RDC, 9 7/8) its contract oil and gas well drilling fall along with oil prices. Crude oil hit a 12-year low last week, and major oil companies have been reducing exploration and drilling operations.
Case Corp. -63.9%
The No. 2 U.S. maker of farm equipment (CSE, 21 13/16) expects 1998 earnings to be 40 percent lower than last year. Farmers are spending less on equipment as recessions in Asia and slowing economies elsewhere keep prices of wheat and other commodities near 21-year lows.
Union Pacific -62.6%
The 20th-largest oil and natural gas company Resources Group in the U.S. has been forced to cut costs Inc. because of weak oil and gas prices. It's (UPR, 9 1/16) shares have fallen 63 percent this year.
Polaroid Corp. -61.6%
The world's largest instant-photography (PRD, 18 11/16) company has lost money in four out of the past five years, as demand for instant
cameras wanes. The company has also been hurt by the economic crisis is Russia, where instant photography is popular. Polaroid announced this month that it will cut 700 jobs and dispose of its Russian assets.
Thermo Electron -61.5%
The largest maker of analytical instruments Corp. for manufacturing and laboratories has seen (TMO, 16 15/16) its stock lose more than half its value this year. Thermo creates companies around the
products they make and profits by selling minority stakes to the public. The company was hurt by a weaker market for initial public offerings and because the industries it serves have slowed. Thermo in August said it would reorganize, aiming to simplify its corporate structure and that of its 23 publicly traded units.
Baker Hughes Inc. -59.5%
The fourth-largest U.S. oilfield services (BHI, 17 5/8) and equipment company has suffered along with the rest of the oil industry. Falling
demand forced the company to announce plans to eliminate 2,000 jobs. Its shares have fallen 60 percent in 1998.
Consolidated Stores -54.1%
The operator of K B Toys, Odd Lots and Big Corp. Lots chains has fallen amid a slowing of the (CNS, 20 3/16) U.S. toy industry. Earlier this month, the retailer dismissed executive Mark Miller, president of the company's closeout operations, for failing to turn around the division, which has reported disappointing sales and earnings. It was the 59th-best performing stock in the index last year, and the 14th-best in 1996.
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Happy New & Prosperous New Year.
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