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

To: rupert1 who wrote (47336)	2/8/1999 10:35:00 AM
From: Loki	Read Replies (3) \| Respond to of 97611

victor...The next act has just been written... Ralph Acampora called for a 5%-10% correction.... (RA made correct call last August) Indexes dropping. Loki

To: rupert1 who wrote (47336)	2/8/1999 10:35:00 AM
From: Elwood P. Dowd	Respond to of 97611

Acampora has thrown a wet blanket on the rally. Can Michael Dell revive the techs??? Intel opens Goldman Tech gathering By Emily Church, CBS MarketWatch Last Update: 7:14 AM ET Feb 8, 1999 Silicon Stocks NEW YORK (CBS.MW) -- Who better to kick off the Goldman Sachs Technology Investment conference in New York this week than Intel's Andy Bryant. Investors have been getting a mixed picture recently on the health of chip sales, and pricing. After a sharp rise in January, technology stocks began pulling back, led lower by the leading chip maker (INTC) and rival Advanced Micro Devices (AMD) on fears a looming price war will hurt the chipmakers' and hardware companies' profits. Intel's CFO was scheduled to open the conference after Monday's trading in a keynote address to money managers and big Goldman investors representing billions of dollars in funds. Over the next four days, some 150 tech companies will tell their stories. For investors looking at the stock performance charts, the question will be whether to buy on these dips. Intel on Monday was widely expected to slash prices of its Celeron chip in sub-$1,000 computer market. The Celeron accounted for about 10 percent of company revenue in the fourth quarter. Investors will be looking for direction on where Intel will make up the profits and how the move impacts the industry. Intel's made a fast-growing market a target; AMD warned late last week it may post a first-quarter loss, due in part to the Celeron price cuts. The Semiconductor Industry Association (SIA) said on Friday that worldwide chip sales for December were down 1.5 percent, leading some Wall Street analysts, such as Merrill Lynch's Thomas Kurlak, to declare that the "worst is over" for the chip stocks. PC outlook Perhaps Michael Dell can shed some light on the subject in his Tuesday keynote. The PC makers are coming off a rebound in fourth-quarter shipments that beat industry expectations, rising 15 percent year on year. Dell's (DELL) U.S. market share rose to 12.8 percent from 9.9 percent in the year-ago period. See www.idc.com How demand looks in light of the chip price cuts is key. Rivals Compaq (CPQ), the world's largest PC supplier, and IBM (IBM), the second, also present on Tuesday. Direct seller Gateway 2000 , No. 6, is up on Wednesday. Net matters Once these heavies are out of the way, the fund managers can turn to what really matters: Internet companies. Look no further than Friday's market action to see the insatiable demand for these stocks. While the Dells, Ciscos and Intels lead the broader market down, Internet IPOs screamed higher. See Market Snapshot. Goldman's gathering lands close on the heels of the NationsBanc Montgomery Tech '99 conference last week in San Francisco -- where many of the same companies power-pointed their way through 20-minute sessions followed by break-outs closed to the press. See Renegade. But where the California crowd piled into the likes of an Amazon.com, look for deal-mad New Yorkers to show up at @home (ATHM) and American Online (AOL) on Tuesday. Open access to cable lines should be a focus in the @Home presentation; look for AOL to discuss its recent e-commerce deals and its plans for MovieFone. Microsoft's (MSFT) CFO Greg Maffei is slated to speak Wednesday. The software giant has set plans to reorganize into four groups to better focus on customer service and give the Microsoft name a wider presence on the Internet, the Seattle Times reported Sunday. RealNetworks (RNWK), E-Trade Group (EGRP), Sportsline (SPLN), eBay (EBAY) and publisher Ziff-Davis (ZD) are also presenting this week. Inktomi (INKT) is expected to offer a look at its shopping service, scheduled to launch in April. Tarnished? Also up Tuesday: Sterling Commerce (SE). The stock dropped over 23 percent on Friday after three analysts downgraded the electronic commerce company. Sterling met Wall Street's earnings expectations of 33 cents a share, but the analysts had been expecting better revenues. Seems there was an unexpected shortfall in software license revenue. See full story.