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>>>Zeev, must be the damn shorts selling the market today according to some thread members as opposed to keeping it from falling it faster. tim<<<
Foreigners are sellers.
Should read...BCGI
BGCI is surging UP to near a day high.
I expect some upgrades soon. Hey, all I'm doing is building a positive.
I think LU breaksout soon. I just going to build a longer term position. Will buy more lower.
Yes, I hope to cover between $11.75-12
Bought LU
OK RMBS, bring me $12
RNWK is up over 18%
Add one more posible negative, the general markets wind. Also, many traders are in this stock. These traders will head for Dodge should the stock start to pullback. I'm just in for a trade. If it gets up near $13-13.10 I'm covering. Can't lose much.
INVN day low
Yes, I'm short RMBS at $12.81 and will hold. My stop is at $13.10
RMBS...
an 30, 2003 (Internet.com via COMTEX) -- Wednesday's decision by a U.S.
appellate court clearing Rambus of fraud charges is not likely to a play a role
in the recent Federal Trade Commission (FTC) motion to declare a summary
judgment against the Los Altos, Calif.-based semiconductor chip designer. The
FTC claims Rambus has forfeited its right to a trial because of its actions in
allegedly destroying documents germane to an FTC action against the company.
M. Sean Royall, deputy director of the FTC's Bureau of Competition, and lead
trial counsel said, "Our trial team is reviewing the Federal Circuit's decision
to determine what if any bearing it may have on the Commission's federal
antitrust suit against Rambus. However, given the significant differences in the
factual and legal issues raised by the FTC's antitrust claims and Infineon's
fraud claims, we do not expect that this ruling will have a substantial impact
on our case going forward."
In Wednesday's decision, the appeals court reversed a Virginia lower court
ruling. The suit began when Rambus filed patent infringement claims against
rival Infineon Technologies . A judge dismissed the patent infringement claims
and a jury found Rambus guilty of fraud for failing to disclose it held patents
or pending patents for technologies that were ultimately adopted by a memory
chips standards group.
Rambus is also involved in ongoing patent infringement claims against Hynix
Semiconductor and Micron Technology.
In June of 2002, the FTC charged Rambus with violating federal antitrust laws by
deliberately engaging in a pattern of anti-competitive acts and practices that
served to deceive the industry-wide standard-setting organization cited in the
Infineon case, resulting in alleged adverse effects on competition and
consumers. Last month, the FTC further charged Rambus with destroying documents
relevant to the case.
The FTC claims Rambus has forfeited its right to a trial. Rambus says it acted
properly under its "document retention" policy, and the firm strongly objected
to the motion for default judgment, claiming the FTC hasn't proved its case.
If Rambus is unable to stop the FTC action, the company could be forced to
forfeit more than a billion dollars in royalty claims for its chip designs.
Rambus doesn't make or sell chips but collects patent royalties for its designs
from chip makers such as Intel. The company's primary chip designs used to
improve the speed of programs used for databases, digital photography and games.
By Roy Mark
URL: http://www.internet.com
FYI...UBS Warburg Global Health Services Conference on
Monday, February 3, 2003.
NWRE acting strong here..
RCL surging to a day high
Love this one. Still long
Watching KG....Looks over done.
EL....Big move worth watching.
If we get thru that $5.60 wall with no problem I will hold all my shares. We shall see...
The following companies issued guidance recently:
-AdvancePCS (ADVP) again raised its earnings guidance for the fiscal year ending March 31, predicting fiscal 2003 earnings of $1.71 to $1.72 a share before items.
-Allergan Inc. (AGN) forecasts first quarter earnings of 52 cents to 53 cents a share on sales of $375 million to $395 million, which falls in line with the current Wall Street estimates for that period. Analysts expect Allergan to earn 53 cents a share on sales of $378.8 million in the first quarter.
-For 2003, Ametek Inc. (AME) expects earnings between $2.65 and $2.75 a share, compared with a Thomson First Call mean estimate of $2.75 a share. The guidance includes the positive impact from the recent acquisition of Airtechnology, and about $7 million, or 14 cents a share, in additional pretax pension expense.
-AZZ Inc. (AZZ) director L.C. Martin resigned from the board, which will result in a fourth-quarter severance charge of $200,000.
-Ball Corp. (BLL) expects earnings per share of $3.60 in 2003, above analyst views of $3.45. The company expects 2003 sales of about $5.1 billion, with $4.6 billion coming from its packaging segment and $500 million from its aerospace and technologies segment.
-BCE Inc. (BCE) confirmed its guidance for all of 2003, projecting revenues of C$19.3-C$20.0 billion, EBITDA of C$7.4-C$7.8 billion and net income before items of C$1.85-C$1.95 a share.
-Borland Software Corp.'s (BORL) forecast first-quarter pro forma earnings between less than 1 cent a share and 4 cents a share - below analysts' expectation of 8 cents a share - because of higher-than-expected transition costs from its acquisitions of TogetherSoft and Starbase. The company projects first-quarter revenue between $77 million and $83 million.
-Celestica Inc. (CLS) expects revenue of $1.5 billion to $1.7 billion in the first quarter, with adjusted net of 4-10 cents a share. The Thomson First Call mean estimate is for the company to have adjusted net in the first quarter of 16 cents a share.
-Cooper Cameron Corp. (CAM), noting that the first quarter is generally weaker sequentially, warned that earnings for the period will likely come in well below Wall Street's estimate of 39 cents a share. The company expects earnings of 20 cents to 25 cents a share for the period.
-For the third quarter, Corinthian Colleges Inc. (COCO) expects earnings per share between 33 cents and 34 cents, which brackets a First Call estimate of 33 cents. For fiscal 2003, Corinthian expects earnings per share between $1.32 and $1.34, which lies above a First Call estimate of $1.28.
-CSG Systems, (CSGS) warned that first-quarter earnings before restructuring charges will likely total 24 cents to 27 cents a share. Revenue should be $144 million to $152 million.
-Cummins Inc.'s (CUM) lowered guidance for 2003, to $1.80 to $2 a share, noting that weakness continues in the power-generation markets. Nine analysts surveyed by First Call now put Cummins' earnings at $1.78 a share for the full year.
-Cymer Inc.'s (CYMI) expects first-quarter revenue of $71 million to $74 million. A consensus first-quarter estimate predicts Cymer will post a loss of 9 cents a share and revenue of $64.31 million.
-DaimlerChrysler AG (DCX) declined to comment on a report saying it is likely to double its annual dividend to EUR2 a share for 2002. According to German weekly Focus Money, the company already settled on a EUR2 dividend.
-Dial Corp. (DL) expects 2003 earnings per share from continuing operations of about $1.31, 2 cents short of First Call's consensus estimate, and first-quarter earnings per share from continuing operations of about 28 cents, matching First Call's mean estimate.
-Diebold Inc. (DBD) expects first-quarter earnings of 34 cents to 39 cents a share, compared with year-ago first-quarter earnings of 37 cents a share. Two analysts surveyed by Thomson First Call both expect the company to earn 42 cents a share in the current quarter.
-Dorel Industries Inc. (DIIBF) expects to earn between $2.30 and $2.36 a share in 2003. As reported on Nov. 5, the company boosted the low end of its previously issued 2002 net income guidance to between $1.95 and $2.00 a share from $1.90 to $2.00.
-Durect Corp.'s (DRRX) said it expects a loss in the current first quarter of $7 million to $7.5 million, or 14 cents to 15 cents a share. The two analysts surveyed by Thomson First Call, on average, predict that Durect will post a first-quarter loss of 15 cents a share.
-EarthLink Inc. (ELNK) expects a first-quarter loss of $29 million to $33 million before facility exit costs, on revenue of $352 million and $358 million.
-Emco Ltd. (EMLTF) expects 2002 net earnings in the range of $31 million to $33 million compared to $9.6 million in 2001, adding that it sees basic share earnings of $1.90 to $1.94 and diluted share earnings of $1.72 to $1.75.
-Emerson Radio Corp. (MSN) expects fiscal 2003 revenues to increase by about 13% to $358 million from $318 million in fiscal 2002.
-Engineered Support Systems Inc. (EASI) reiterated its estimates for 2003, saying that it forecasts a 12% to 13% increase in revenue, to around $460 million for the year, without consideration for any potential future acquisitions.
-Ensco International Inc. (ESV), an oil drilling company, expects first-quarter earnings of 16 cents to 21 cents a share, below the Thomson First Call analysts' consensus estimate of 26 cents a share. A year ago, Ensco earned 9 cents a share.
-Exelon Corp. (EXC) expects to earn $4.80 to $5 a share in 2003, as it continues to manage costs and improve efficiency and productivity. A Thomson First Call survey of 15 analysts yielded a mean earnings estimate of $4.89 a share for 2003.
-FBR Asset Investment Corp. (FB) projects total revenue of about $331 million for FBR Group in 2003.
-FMC Corp. (FMC) said it expects 2003 earnings of $1.75 to $2 a share - well below the average analyst view of $2.77 a share, as polled by Thomson First Call.
-Garden Fresh Restaurant Corp. (LTUS) expects second-quarter net income of $2.4 million, or 40 cents a share, on sales of $58.5 million.
-GlobalSantaFe Corp. (GSF) expects first-quarter earnings to be significantly below the fourth quarter's 22 cents a share, due to generally lower utilization and dayrates for its semisubmersibles and several of its North Sea jackups.
-IndyMac Bancorp Inc. (NDE) said it expects
2003 earnings per share will range from about $2.41 to $2.77. Analysts expect the company to earn $2.66 a share for 2003, according to Thomson First Call.
-Integrated Electric Services Inc. (IES) said it expects second-quarter earnings of 8 cents to 12 cents a share, compared with 8 cents a share a year earlier, excluding a year-ago charge for work force reductions.
-Intersil Corp. (ISIL) remains cautious in its outlook as a "historically soft quarter" for the semiconductor industry begins, expecting first-quarter adjusted earnings of 13 cents to 14 cents a share.
-Kennametal Inc. (KMT) expects third-quarter operating earnings to come in at between 47 cents and 52 cents a share -- significantly below a First Call estimate of 62 cents a share.
-Laboratory Corp. of America Holdings (LH) reiterated its previous financial guidance for 2002 and 2003, expecting to earn $1.83 a share for 2002 and see 2003 earnings per share grow 20%.
-Lexington Corporate Properties Trust (LXP) reiterated that it continues to expect funds from operations of $1.95 to $2 a share in 2003, unchanged from when it reported third-quarter earnings in October.
-Manpower Inc. (MAN) forecasted first-quarter earnings of 16 cents to 20 cents a share, which falls below the current Thomson First Call estimate of 24 cents a share. In the 2002 first quarter, the company earned 9 cents a share.
-McCormick & Co. (MKC) expects 2003 earnings per share to increase 9% to 11%. Based on 2002 earnings of $1.29 a share, the company expects 2003 earnings between $1.41 and $1.43 a share.
-Media General (MEG) said it sees first-quarter earnings of 32 cents to 35 cents a share. The company earned 26 cents a share in the 2002 first quarter. For 2003, the company expects earnings of $2.50 or better. For 2002, Media General earned $2.30 a diluted share before items.
-Multimedia Games Inc. (MGAM) expects fiscal 2003 earnings of $2.30 to $2.60 a share. Analysts expect 2003 earnings of $2.48 a share, according to Thomson First Call.
-OfficeMax Inc. (OMX) said its fourth-quarter domestic same-store sales finished strong and rose more than 8% from a year ago, prompting the retailer to reiterate prior earnings estimates of 11 cents to 13 cents a share for the fourth quarter with 6 cents to 8 cents a share for the year, excluding a tax benefit.
-Owens-Illinois Inc. (OI) expects to reduce its assumed rate of return on pension assets in 2003. The company hasn't yet completed its analysis, but it expects a 2003 reduction in pension credits to total about $55 million.
-PepsiAmericas (PAS) expects earnings per share will grow 9% to 11% in 2003, suggesting earnings per share of 98 cents to about $1, based on 2002 adjusted earnings from continuing operations. Analysts are expecting 2003 earnings of $1.03 per share, according to First Call.
-Philadelphia Suburban Corp. (PSC) said it expects fourth-quarter net income and income from operations to be "significantly higher" than the 18 cents a share in net income posted in the year-ago fourth quarter.
-Reebok (RBK) said its current goal is to increase its earnings per share for the year in the range of 15%. This would suggest earnings of $2.35 a share, based on 2002 earnings of $2.04 a share, excluding the cumulative effect of accounting change.
-Ryanair Holdings PLC (RYAAY) said Wednesday that it is growing faster than it had previously predicted. The airline had always planned to grow at 25% year-on-year, but last year growth jumped to 34%, and this year it expects 35% growth. The company had expected 2004 growth to drop to 25%, but that's now seen higher.
(MORE) Dow Jones Newswires
I agree....those numbers are from Dow Jones news wires.
Here is the whole thing....
Micron also declined comment on the court decision. "We're still digesting the information," said spokesman Sean Mahoney. Referring to the company's suit with Rambus, Mahoney said: "We believe we have a strong case."
However, Wall Street was convinced. Analysts such as Erach Desai of American Technology Research rushed to upgrade their ratings on Rambus stock. Rambus could collect royalties on the DRAM memory market, a $20 billion business in 2002, Desai wrote in a mid-day research note.
When the patent infringement case is heard "Rambus is gong to win," said B. Riley's Crawford.
Pacific American Securities' Cohen described the ramifications of a victory as substantial. Rambus could claim up to 3% of the price of memory chips used in devices such as personal computers, network servers, Internet routers and high-definition televisions. That would include popular types of memory such as DDR, or double data rate, and SDRAM, synchronous dynamic randon access, memory.
The impact of today's ruling on the FTC's antitrust case against Rambus was less clear. Speculation grew on Wall Street that the FTC would drop its action.
But FTC spokeswoman Claudia Bourne Farrell suggested the agency's suit was a separate issue. The FTC is suing Rambus for violations of antitrust law, not for fraud, she said.
The FTC "will want to study this opinion closely, said Rambus' Tate.
The FTC has asked a federal court to proceed immediately to the punishment phase of its lawsuit and has accused Rambus of destroying documents.
By Mark Boslet, Dow Jones Newswires, 650-496-1366
mark.boslet@dowjones.com
By Paula Stepankowsky, Dow Joens Newswires, 360-636-2008; paula.stepankowsky@dowjones.com
(END) Dow Jones Newswires
01-29-03 1708ET
Upside Surprises
Companies whose quarterly net income (or loss) was better than the mean estimate provided by First Call:
Net Or First Call
(Loss) Mean Estimate
Airgas Inc ARG 3Q 23c 21c
AOL Time Warner AOL 4Q Norm 28c 26c
Business Objects BOBJ 4Q 20c 17c
Cell Genesys CEGE 4Q (34c) (38c)
Electronic Arts ERTS 3Q $1.69 $1.57
Foundry Networks FDRY 4Q 8c 6c
Leggett & Platt LEG 4Q 25c 24c
Micrel MCRL 4Q PF (1c) (2c)
Owens & Minor OMI 4Q Op 37c 36c
Pemstar PMTR 3Q (5c) (8c)
Quest Software QSFT 4Q PF 8c 7c
Renaissance Learn RLRN 4Q 22c 20c
Sierra Health SIE 4Q Cont 39c 37c
Tekelec TKLC 4Q PF 8c 7c
Three-Five Sys TFS 4Q (12c) (15c)
Universal Elec UEIC 4Q 15c 10c
Downside Surprises
Companies whose quarterly net income didn't meet the First Call mean estimate or companies that reported an unexpected loss or a greater-than-expected loss:
Net Or First Call
(Loss) Mean Estimate
O2Micro Intl. OIIM 4Q 6c 7c
On-Target Earnings
Companies whose quarterly net income matched the First Call mean estimate:
Net Or First Call
(Loss) Mean Estimate
Alliance Data Sys ADS 4Q Cash 18c 18c
Chiron Corp CHIR 4Q PF Cont 33c 33c
Duke Realty DRE 4Q FFO 59c 59c
ESS Tech ESST 4Q PF 3c 3c
Gateway GTW 4Q Op (19c) (19c)
Maxim Integrated MXIM 2Q 23c 23c
NBC Capital NBY 4Q 41c 41c
So Far Today
Upside Surprises 39
Downside Surprises 8
On-Target Earnings 17
Be careful with this one....
RMBS
The impact of today's ruling on the FTC's antitrust case against Rambus was less clear. Speculation grew on Wall Street that the FTC would drop its action.
But FTC spokeswoman Claudia Bourne Farrell suggested the agency's suit was a separate issue. The FTC is suing Rambus for violations of antitrust law, not for fraud, she said.
The FTC "will want to study this opinion closely, said Rambus' Tate.
The FTC has asked a federal court to proceed immediately to the punishment phase of its lawsuit and has accused Rambus of destroying documents.
By Mark Boslet, Dow Jones Newswires, 650-496-1366
mark.boslet@dowjones.com
By Paula Stepankowsky, Dow Joens Newswires, 360-636-2008; paula.stepankowsky@dowjones.com
(END) Dow Jones Newswires
01-29-03 1708ET
By H. Asher Bolande
A SLEW OF little-known companies in China is flocking to mobile-phone manufacturing, rapidly commoditizing the basic handset and threatening to price the industry leaders out of the market.
The industry still is dominated by a few global titans such as Nokia Corp. and Motorola Inc., who together control 55% of the world market. But more than 20 companies in China alone have entered the business, raising their share of China's domestic market -- the world's largest -- to 20% from nearly nothing in just three years. During 2002, their output more than doubled to 23 million phones, raising the number of models available at any given time in China to more than 500 from about 30 a few years back.
That explosive growth is set to overflow onto the world stage, threatening to thin margins and increase competition throughout the industry. The average price consumers pay for cellphones world-wide has been dropping by nearly 10% annually, hitting $206 last year from $411 during 1996, according to Gartner Dataquest research. Yet as these fast-growing new Asian players acquire economies of scale, they will be positioned to crowd the mass-market segment internationally, pressuring prices further.
Chinese handset makers are driving "the way the price goes down and the speed at which it goes down," says Peter Lovelock, a telecom analyst at consulting firm MFC Insight in Beijing.
Much in the same way that Taiwan helped turn the personal computer into a generic white box in the late 1980s, forces at work are rapidly picking apart the cellphone maker's value chain. While the big companies built their brands by developing products from the bottom up, handling every aspect in-house, the entrants are able to outsource all the main technology. A stable of companies offer phone designs and bundles of components ready-made for manufacturers. That, in turn, lowers the barrier to entry to the point where virtually anyone can create their own phone in a snap.
For example, Ningbo Bird Co., the second-biggest Chinese brand, has 13 models using components supplied by South Korea's LG Electronics Inc. and Sewon Telecom Co., Taiwan's BenQ Corp. and France's Sagem SA, according to investment house Bear Stearns. It also has signed a deal for chipsets from Philips Semiconductor, a unit of Philips Electronics NV. Sometimes it buys the blueprint for the final product from a design house. It shipped five million phones in 2002.
The number of potential suppliers for these manufacturers is swelling. A senior executive at TCL Mobile Communications Ltd., China's biggest handset maker, with roughly 10% of the national market, says his company doesn't have the time to test and assess all that's available.
Nokia, by contrast, is counting on its strong brand and technological innovation to differentiate itself from the flood of emerging Asian competitors. But what the Chinese brands lack in technological innovation, they make up for in speed to market. Responsiveness to changing consumer tastes is an increasingly important factor in handset competition -- and the outsourcing model gives them a bigger edge. TCL Mobile launched 16 models in 2002, compared with six the previous year.
That acceleration, says MFC Insight's Mr. Lovelock, is forcing global giants to react. "Nokia, Motorola and Samsung are ramping up the number of models they're coming out with in a year," he says. "This is all in direct response to China."
Outsourcing also helps make the new breed of makers efficient and flexible. Unlike the industry titans, they can abandon handset models without worries about sunken costs such as investments in fixed capital. "The economic advantage is a reduction in investment in plant and machinery as well as avoiding the risk of idle [factory machinery]," says Marcel Fenez, a management consultant at PriceWaterhouseCoopers in Hong Kong. These efficiencies are amplified by China's low-cost, high-volume manufacturing environment, putting the mobile phone on the same path to thin-margin mass production that other electronic products have taken in the country, from TVs to stereos.
"I am absolutely convinced Chinese companies will control the low end of the [global] market," says Peter Baumgartner, the Philips Semiconductor senior vice president in charge of supplying chips to handset manufacturers.
Still, no Chinese brand is ready to compete with Nokia for billboard space in London or New York. Rising domestic demand has driven an explosion of manufacturers in China -- the country still is adding about three million cellular subscribers each month. But the manufacturers will need to consolidate before China can yield a player with enough scale to directly challenge one of the industry leaders internationally.
Motorola and other mobile-phone giants downplay the threat as limited to the low-end, saying they will keep ahead by continually introducing technology. "The trend is becoming more feature-rich," says Stephen Tsao, Motorola's Hong Kong-based marketing director for innovative convergence strategy. By enhancing handsets with cameras, music, the Internet and video games, Motorola will maintain its margins, he predicts.
Some analysts say such fancy features remain unproven. Nokia has invested heavily in such technologies on the assumption that the average consumer will pay extra for them, says Matt Lewis, an analyst with London-based telecom consulting firm ARCchart Ltd. "It's just not a theory we're seeing borne out in the marketplace," he says, citing lackluster takeup of high-end services.
The bulk of global users -- especially first-timers in Latin America, Africa and Eastern Europe -- still will want basic communications devices, says David Almstrom, a former executive at Telefon AB L.M. Ericsson who is a wireless consultant in Beijing. "There, the Chinese manufacturers have an advantage. That's what they're good at."
(END) Dow Jones Newswires
RMBS....While it was fun trading it today, I wonder how many traders are going to get there butts kicked here. Just a felling.
I agree, keep in mind the European investors will most likely sell into any rally today in the morning on Thurs.
Yup, I was stopped out flat.
>>>Apparently it wasn't wise and apparently you didn't take your own advice.<<<
Apparently? I did take some off the table Tues and sold out totally today. How did you Apparently do. Good luck
Why is that?
VXGN squeeze up again.
RVSN breakout
Sold my 3 fuel cell stocks at the open.
Forty Percent of US Public Companies Have Negative Earnings
28-Jan-03 00:22 ET
[BRIEFING.COM - Robert V. Green] Yesterday, we analyzed the average price/sales and price/earnings ratios of public companies. One of the unintended results of that study was a calculation of how many companies currently have trailing twelve month negative earnings. The numbers were astonishing.
Yesterday's Stock Brief: Average Price/Sales and Price/Earnings Ratios
In yesterday's Stock Brief, we analyzed the entire stock market to determine the average price/sales and price/earnings ratios for stocks in the market.
To do that, however, we excluded stocks with negative earnings from the average price/earnings ratios. This has the effect of raising the average price/earnings of a stock far above the average PE of the S&P 500, for example, because the index averages are calculated differently.
Index averages are computed by adding up the entire revenue of all companies, and the entire earnings of all companies. The same approach is taken for computing the PEs of the various sectors.
Our approach in yesterday's Stock Brief allowed us to compute the average PE for stocks with earnings. In doing that, we had to exclude stocks without earnings. The earnings calculation methodology that was used excludes one-time extraordinary items and accounting changes.
The earnings calculations are trailing twelve month earnings.
Companies With Losses
The following table summarizes the list of stocks without earnings for the entire market. We have excluded stocks on the bulletin board markets and companies with headquarters outside the US and ADRs. These exclusions ensure that all revenue numbers are in dollars.
Stocks by Revenue Total Stocks Stocks With Negative Earnings Percentage
0 - $100 million 2,364 1,271 53.8%
$100 to $500 million 1,445 502 34.7%
Over $500 million 1,539 335 21.8%
All US Stocks (NYSE, NASDAQ, AMEX only) 5,349 2,108 39.4%
It is no surprise that losses are more prevalent in smaller companies, but it is unusual to find more than 20% of large revenue companies showing losses for the past twelve months.
Stocks With Negative Earnings, By Sector
What industries are not supporting the stocks that do business in that sector?
The following table shows the number of stocks with losses in each sector. We have not broken these out by revenue size, but the overall pattern as shown above holds. Within each sector, the number of stocks with losses in the below $100 million revenue range is roughly twice the number in the over $500 million range.
Sector Total Stocks Stocks With Negative Earnings Percentage
Basic Materials 259 95 36.7%
Capital Goods 291 80 27.5%
Conglomerates 17 3 17.6%
Consumer Cyclical 249 66 26.5%
Consumer/Non-Cyclical 189 37 19.5%
Energy 211 92 43.6%
Financial 963 129 13.4%
Healthcare 615 350 56.9%
Services 1131 404 35.7%
Technology 1209 803 66.4%
Transportation 97 36 37.1%
Utilities 118 13 11.0%
Conclusions
These percentages are high above historical averages for the number of stocks showing losses at any given time, although we have not presented historical percentages. The bubble era supported many stocks with losses, which greatly distorts a short term comparison.
It is no surprise that technology companies are losing money, but few people probably realize that a full two-thirds of technology stocks are losing money.
Also not surprising might be the healthcare sector, as this includes the biotech companies, many of which do not even have revenue, much less earnings.
Nevertheless, this is pretty discouraging data for the health of American companies. However, it is a backward-looking perspective.
What this data really shows is just how bad things were for most companies over the past year. The real problem at most companies is that expense levels could not be adjusted to match declines in revenue. The financials stand out as an exception to this overall condition.
The positive news is the financial sector, which shows relatively healthy companies. The primary reason for this is that financial companies are frequently able to cut costs in bad times, in order to maintain profits. This is not very "healthy" if you work at a financial company, but it is healthy for the overall company.
This data helps confirm a thesis we have maintained for some time: financial stocks will lead the market when it finally recovers, not technology stocks.
Comments may be emailed to the author, Robert V. Green, at rvgreen@briefing.com
Not sure he was convincing enough. I'm mixed.
Overbought and the general market wind will take it south.
CYMI says....
Bob Akins, Cymer's chief executive officer, noted, "Results for the fourth quarter were generally at the favorable end of or in-line with our most recent guidance. During the quarter, we implemented cost reduction measures in an attempt to manage our break-even point. The benefits of these efforts could not be realized quickly enough to compensate for the erosion in revenues, especially in light of our ongoing investment in research and development (R&D), and the result was a loss for the quarter. Despite the fourth quarter, however, we remained profitable for the year."
In other words...
We were saw we were having a chit quarter and trid to do more cost cutting to save it, but the erosion was sinking faster then the cost cutting.
CYMI also said.....
"Given the mixed state of the industry and the ongoing level of worldwide political uncertainty today, we believe the industry will not begin a robust upturn before the second half of the year at the earliest, and our internal plan doesn't contemplate an upturn of significance before the end of the year."
In other words....
Forget all that crap you see on CNBC about a chip rebound in 2003.
Chairman and chief executive officer Richard Hill's comments did not give a
glimpse of the long-awaited chip industry recovery either.
Hill said in a statement: "The industry is still experiencing a major slowdown
in capital expenditures."
Chip equipment makers have suffered from substantial cuts in spending budgets by
chip manufacturers worldwide -- most notably Intel Corp and Taiwan Semiconductor
Manufacturing Co Ltd.
Remember, I said TSM is the real tell of the semiconductor group. Look what TSM did today.
>>>WHy do you think Q4 should be their best, seasonally? I would have guessed Q1, when new budgets are out...<<<
New budgets? Companies are holding back spending because of lack of demand. Where is the demand? Lets also remember that techs are soon going into their slow season.