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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Paul Reuben who wrote (102285)	2/17/1999 9:45:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 176387

Kimberly Alexy,Prudential & Brian Finnerty,CE Utterberg on DELL. (Courtesy:NBR) 02/17/99: Dell Turns Out To Be A Real Downer SUSIE GHARIB: Another down day on Wall Street, and once again, technology stocks were the loss leaders. The NASDAQ got hammered, down almost 3 percent, while the Dow dropped about 1 percent. As Suzanne Pratt reports, troubles at Dell Computer triggered the sell-off. SUZANNE PRATT, NIGHTLY BUSINESS REPORT CORRESPONDENT: It was a day that went from bad to much, much worse for most technology stocks. Disappointment over Dell Computer's fourth quarter earnings was the culprit, as the stock dropped 8 percent. Some investors are concerned that a shortfall in revenue for the PC maker, announced late yesterday, is the first part of a crack in Dell's winning formula. But many Wall Street experts disagree. And Prudential Securities analyst Kimberly Alexy is maintaining her strong buy on Dell. KIMBERLY ALEXY, COMPUTER ANALYST, PRUDENTIAL SECURITIES: The story is intact. The fundamentals are intact and I firmly believe it's the best-positioned PC stock in the group, and that outlook remains intact in that we did see an execution blip. I think management is addressing it, and that all signs are outlook into the first quarter the growth is tracking plan. PRATT: Whether Dell's troubles are short-term or long-term, most experts say they do not suggest an industry-wide problem. Nevertheless, technology shares sold off across the board today. And the NASDAQ's big-name issues are now sharply off their highs for the year. Dell is off 26 percent. Cisco (CSCO) is off 19 percent. Intel (INTC) 13 percent, and Microsoft (MSFT) 15 percent. Still, some experts say the weakness may present a buying opportunity. BRIAN FINNERTY, MANAGING DIR., CE UNTERBERG, TOWBIN: I think the name of the game is earnings. I think the big cap technology stocks are where the big earnings growth has been, and will continue to be. And I think that's where the money is going to continue to go. So I think that when you get a little crack, I think it's a short-term crack and I think that the money will flow back into the large cap technology stocks. PRATT: It was the incredible move in technology stocks that shoved the broader market higher last fall. If those stocks are now slipping, some experts worry the rest of the market could be in for a rough ride. Suzanne Pratt, NIGHTLY BUSINESS REPORT, New York.