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09:03 ET INET Instinet upgraded at WR Hambrecht (2.53)
WR Hambrecht upgrades to HOLD from Sell due to Sept mkt share gains, stabilizing revenue capture metric, and valuation.
CSFB CUTS MICROSOFT <MSFT.O> PRICE TARGET TO $70 FROM $89
(Reuters 10/10 05:37:48)
REUTERS
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:42 ET YHOO Yahoo! upbeat about EBITDA (9.98 +0.47) -- Update --
On call, notes its 24% EBITDA margin in Q3 was the first time the margin has been above 20% in 7 quarters... expects to operate in a 20-30% EBITDA margin range in 2003... YHOO +0.29 at 10.27
14:25 ET CSFB prefers Texas Instruments over Intel
CSFB says in the long-term they favor TXN over INTC, saying the former's focus on analog and DSPs should enable it to have faster end-mkt growth, better competitive positioning, and higher margins relative to its past peak levels; in addition, firm also cites TXN's increasing capital efficiency due to outsourcing and lower relative valuation. Cuts FY02-03 ests for both co's and cuts TXN's price target to $20 from $25 and INTC's to $16 from $21.
14:09 ET JP Morgan Chase downgraded by Moody's (JPM) 15.80 -0.80:
MSFT may take over SEBL:
12:37 ET SEBL Siebel Systems takeover rumor (6.02 +0.37) -- Update --
We are hearing that a rumor is making the rounds that MSFT may make a bid for SEBL; we have not heard any chatter as to the size of a potential deal and cannot vouch for the veracity of this rumor, and note that speculation on software acquisitions has been rampant in this mkt.
BRCM Broadcom: positive comments from UBS (10.35 +0.55)
UBS Warburg is out with some positive comments on BRCM, citing the co's production ramp of its new cable modem chipsets to ALA (which is #1 in that particular mkt) as well as the CFO's "very positive" body language in a meeting this morning.
11:58 ET BRCM Broadcom: positive comments from UBS (10.35 +0.55)
UBS Warburg is out with some positive comments on BRCM, citing the co's production ramp of its new cable modem chipsets to ALA (which is #1 in that particular mkt) as well as the CFO's "very positive" body language in a meeting this morning.
3M CEO sees 'meaningful impact' from port lockout
(Reuters 10/08 11:40:25)
MILAN, Oct 8 (Reuters) - 3M Co. <MMM.N> has seen a
"meaningful impact" from the lockout that has shut down West
Coast ports and it is trying to encourage a settlement, the
diversified manufacturer's chief executive said on Tuesday.
"A significant portion of our Asian business is exported,
so there is an impact that is not positive," said James
McNerney, speaking on the sidelines of a conference in Milan.
"We want to see it resolved and our people are trying to work
with the politicians to get it resolved as quickly as we can."
He spoke amid signs the White House would intervene in the
labour dispute, which has cost the U.S. billions of dollars.
President George W. Bush will seek a court order to suspend the
lockout, a senior Bush administration official said on Tuesday.
"I'd like to see a quick resolution that has long term
staying power, and I know it's not a simple issue," McNerney
said.
McNerney did not quantify the impact of the lockout, but
said it had affected "a wide range of products in Asia."
"This is not the kind of impact on our company that's going
to bring us to our knees but it's something that gets in the
way of servicing our customers in a timely and proper fashion,"
he added.
McNerney, who spoke at a forum on corporate governance,
also said he expected more companies to move to increase the
number of outsiders on their boards and to boost the strength
of auditing committees.
"In today's day and age I think it's important even for
companies with strong audit processes to ask the question
again, so I think you'll see more of that," he said.
McNerney declined to comment on the company's third-quarter
results, due for release Oct. 21.
((Milan newsroom, +39 02 6612 9507, fax +39 02 801 149,
christian.plumb@reuters.com))
REUTERS
S.RT MMM IT.R US.R SHP.R ASIA.R WEU.R EUROPE.R JOB.R RESF.R MMM-L MMM-R MMM-Z
:49 ET ATYT ATI Tech chip to be used in new Hewlett-Packard, Fujitsu notebooks (4.34 +0.15)
Announces that its Radeon IGP 320M will be used in HPQ's new Evo N1015v series notebook and as well as Fujitsu Siemens Computers's Amilo A Series consumer notebook.
09:21 ET AMAT Applied Materials: Q4 revs could come in lighter than expected - Lehman (10.87)
Lehman says they could envision a scenario where Q4 revenues could come in lighter than expected due to order pushouts and cancellations; if this proves to be the case, firm would expect AMAT to preannounce rather than post weaker than expected results on its Nov 13 conference call; says shares still look expensive at a price-to-sales multiple of 3.8x, a healthy premium to the overall sector.
Sony makes $20 million investment in PALM:
PALM <PALM.O> SAYS SONY <6758.T> MADE $20 MLN INVESTMENT IN
(Reuters 10/08 06:01:50)
PALMSOURCE UNIT
REUTERS
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It's bad enough that Dell and hundreds of other companies spend as much time promoting their stock as they do running their business. What's worse is that investors still fall for it.
By Bill Fleckenstein
The mania has come and gone, but Wall Street acts as if the old bull-market "rules" still work. Spurious notions abound, like stocks being cheap based on where they once traded or on "relative valuations." Companies continue to promote their stocks, hoping that investors won't see through the hype. The times are tough, but facing the facts is the best medicine.
After the market close last Tuesday, Dell Computer (DELL, news, msgs) decided that a rounding error the length and breadth of 2.2% was the stuff of which news is made. Its announcement engendered hallucinations of sugarplums in the Philadelphia Semiconductor Index ($SOX.X), as that index promptly took the lead to the upside the next morning. As I watched the early action, it was just this kind of thinking that left me stunned by how few lessons have been learned thus far from our bear market, now 2½ years in the running. The reasons cited for buying stocks are, in general, their supposed cheapness, based on some theoretical model based on assumptions. You rarely see bulls talk about how a specific business is valued cheaply, given the dynamics of that business. This certainly can't be done for a multitude of companies.
http://moneycentral.msn.com/content/p31224.asp
CSCO to partner w/VRTS:
11:20 ET CSCO Cisco Systems: visibility from customers getting "tighter" (8.95 -0.51)
Dow Jones reports that CEO John Chambers said at a Florida conference today that "visibility from customers is getting tighter" and that a service provider recovery will lag the IT recovery; in addition, he said that CSCO will likely partner with VRTS and sees more competition from DELL.
Dallas Fed economist thinks US deflation possible
Reuters, 10.01.02, 3:33 PM ET
WASHINGTON, Oct 1 (Reuters) - A top economist at the Federal Reserve Bank of Dallas said on Tuesday he did not think the United States would tip into an environment where price declines were widespread, but it was possible.
"In looking at inflation, I've discovered it has a momentum of its own," Dallas Fed Research Director Harvey Rosenblum said. "When it gets this momentum, monetary policy is going to impact it with a long and variable lag," he told a meeting of the National Association for Business Economics
"As a result, there is a distinct possibility that disinflation could morph into deflation," he said, echoing words Dallas Fed President Robert McTeer had used on Monday.
http://www.forbes.com/markets/newswire/2002/10/01/rtr737614.html
EMC SAYS NOT LIKELY WILL REACH PROFITABILITY FOR H2, WHICH WAS
(Reuters 10/03 13:27:20)
EARLIER GOAL
MORE
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EMC halted
13:44 ET MERQ Mercury Interactive: cautious comments from BofA (17.70 +0.08)
After attending the co's user conference (runs Oct 2-5), Banc of America says they do not see any catalysts emerging and expect the stock to mark time near its current level; furthermore, firm says ests are still at risk and notes that users' reactions to new initiatives have been lukewarm.
12:50 ET KLAC KLA-Tencor rumor pressuring stock (28.30 -1.15) -- Update --
There is once again speculation among traders that KLAC may preannounce. Sources are telling us that Salomon Smith Barney has commented on this rumor, noting that since business conditions are sufficiently difficult a warning would not be out of the question; however, while firm continues to expect bad news to pressure the sector as a whole in the near-term, they believe that KLAC will see orders bottom in Q4 or Q1.
QLGC weak on Merrill downgrade.
17:12 ET CHKP Check Point Sftwr updates Q3 guidance (13.00 -0.23)
Company expects to report Q3 revenues of $103 to $104 million and earnings per share of $0.25 -- current Multex consensus estimates are $0.25 per share and $108.8 million.
16:13 ET AMD Advanced Micro -- trading halted, news pending (5.37 +0.10)
Nintendo cuts full year profit outlook
Firmer yen hits export-heavy game maker's business
By Mariko Ando, CBS.MarketWatch.com
Last Update: 9:22 AM ET Oct. 1, 2002
OSAKA (CBS.MW) - Japanese video-game maker Nintendo late Tuesday slashed its full-year profit outlook by 11 percent due to eroding overseas revenues as a result of the yen's firmer trend.
Nintendo (NTDOY: news, chart, profile) now expects a consolidated profit of 80 billion yen ($655 million) in the fiscal year ending next March 31. The company, which generates about 70 percent of its total sales overseas, previously forecast a profit of 90 billion yen.
It also cut its revenue forecast by 6.3 percent to 600 billion yen.
Like many other exporters, Nintendo also suffered from the yen's firmer trend against the dollar as it erodes the company's overseas revenues when converted into the home currency. The yen gained about 8.5 percent against the dollar since the start of the current business year.
http://cbs.marketwatch.com/news/story.asp?siteid=mktw&guid=%7B9A21517A%2D52C2%2D414F%2DAF40%2DCF...
Tokyo Nikkei drops below 19-yr low, banks weak
Reuters Market News
Tokyo Nikkei drops below 19-yr low, banks weak
Wednesday October 2, 1:39 am ET
(Updates to mid-afternoon)
TOKYO, Oct 2 (Reuters) - Tokyo's Nikkei stock market average fell through a 19-year low on Wednesday afternoon after banks such as UFJ Holdings Inc (Tokyo:8307.T - News) reversed early gains on worries over the effects of accelerated bad loan writeoffs.
http://biz.yahoo.com/rf/021002/markets_japan_stocks_1.html
DELL COMPUTER <DELL.O> SAYS INCREASES Q3 REV GUIDANCE
(Reuters 10/01 13:06:02)
MORE
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THQI bouncing from lows.
The Breakdown in Banking
Trust is eroding, and profits may follow as business models falter
In the 1990s, the sky seemed the limit for financial institutions. Once restricted to taking deposits and making loans, banks broke into the business of selling securities. Wall Street investment houses began making loans to companies. The result was a flood of money to promising new companies, existing businesses, and consumers. That fueled the New Economy with its rapid productivity growth and made the American financial system the envy of the world. Moreover, the financial system seemingly sailed through the 2001 recession and the accompanying stock market decline in good shape. Commercial banks had record profits in the second quarter of this year, and their balance sheets were far stronger than in previous recessions.
But now, the ever-closer partnership between commercial banking and investment banking is showing signs of strain. Putnam Lovell Securities estimates that earnings at five of the largest firms--Citigroup (C ), J.P. Morgan Chase (JPM ), Merrill Lynch (MER ), Goldman Sachs (GS ), and Morgan Stanley (MWD )--could stay stuck below 1998 levels this year. On Sept. 17, J.P. Morgan Chase & Co. warned that its third-quarter operating profits will be "well below" those of the second quarter as losses on corporate lending may more than quadruple, to $1.4 billion. One possible reason: Many of those loans were made to now-struggling or failed telecom companies in a bid to win investment banking.
That's a small part of the unprecedented wave of bad debt flooding the financial system. A record $880 billion worth of corporate bonds and loans are distressed or in default, according to Edward I. Altman, a professor at New York University's Stern School of Business. As the losses mount, the biggest firms are facing the threat of legal action from investors who see themselves as the victims of a massive con game.
http://www.businessweek.com/magazine/content/02_40/b3802046.htm
14:05 ET HPQ Hewlett-Packard files patent infringement complaint against EMC (11.85 -0.18)
13:53 ET MOT Motorola: judge dismisses $800 mln cancer lawsuit (10.08 -0.21) -- Update --
Dow Jones reports that a judge has dismissed an $800 mln lawsuit against MOT and other cell phone makers in which a doctor had claimed his cell phone had caused his brain tumor; the judge dismissed the widely-watched suit for lack of substantial evidence, and the ruling is seen as positive for MOT since an adverse ruling could have opened to door to further lawsuits.
10:06 ET AMZN lower amid preannouncement rumor (16.20 -0.81)
Stock trades off 4.5%, on rather heavy volume of 2.1 mln shares (avg daily 6.8 mln), amid rumor circulating trading floors that company will preannounce quarterly results.
09:43 ET ACLS Axcelis Tech buyout rumor (4.61 -0.03)
We are hearing Street talk that AMAT is in preliminary discussions to buy ACLS; the rationale is that ACLS is a natural fit since the two co's make similar ion implant technology, but ACLS has a significant technology advantage
Intel sees no industry rebound until firms recover
Reuters Company News
Intel sees no industry rebound until firms recover
Sunday September 29, 11:49 am ET
DUBAI, Sept 29 (Reuters) - Intel Corp (NasdaqNM:INTC - News) Chief Executive Craig Barrett said on Sunday he did not expect a real turnaround in computer sales until companies returned to profitability and started spending on technology.
http://biz.yahoo.com/rc/020929/tech_intel_1.html
12:49 ET MU Micron upgraded by Rick Whittington this morning (13.20 +0.65)
Rick Whittington was previously the semi analyst at B of A and is now with the boutique firm American Technology Research. This morning, he upgraded MU to a BUY from Hold citing these factors: 1) signs of seasonally improved PC sales, 2) channel activity for graphics memory, frequently a precursor to main system memory, 3) Taiwan inputs that leading foundries are seeing upped production plans from graphic chip set customers, 4) improved risk/reward for MU (but not the semi sector generally).
BRCD Brocade defended by Merrill Lynch (8.50 -1.87) -- Update --
Merrill Lynch doing the requisite defense of BRCD -- says sell off is way overdone; worst case scenario is price of 7.50.
11:52 ET MU Micron outlook revised to negative by S&P (12.75 -0.64) -- Update --
QLGC taken apart.. news?
RESEARCH ALERT-Salomon cuts estimates on 3 chipmakers
(Reuters 09/26 06:51:34)
NEW YORK, Sept 26 (Reuters) - Salomon Smith Barney said on
Thursday it has cut earnings estimates on communications chip
makers Broadcom Corp. <BRCM.O>, PMC-Sierra Inc. <PMCS.O> and
Applied Micro Circuits Corp. <AMCC.O>.
Salomon widened its 2002 loss estimate for Broadcom to 21
cents a share from 19 cents. For 2003, it cut its earnings
estimate to 3 cents a share from 29 cents.
It reduced its price target on Broadcom shares to $20 from
$24 and kept its "marketweight" rating on the stock.
Salomon analyst Clark Westmont cited an expected 30 percent
decline in worldwide digital cable set-top box units in 2003,
as well as lower-than-expected growth in enterprise networking
chip sales, for the reduced estimates. However, Salomon said
it still believes Broadcom could outperform the networking
market due to its strong switch chipset position.
Salomon also cut its estimates on PMC-Sierra and Applied
Micro, citing weak telecom demand, but maintained its
"marketweight" rating on the communication components industry.
For PMC-Sierra, Salomon cut its sales estimate for the
quarter ending this month to $61 million from $60 million and
widened its loss estimate to 6 cents from 5 cents. For the 2002
calendar year, Salomon lowered its sales estimate to $229
million from $238 million and widened its loss estimate to 26
cents a share from 23 cents.
For Applied Micro, Salomon reduced its sales forecast to
$30 million from $33 million for the quarter ending in
December, and to $122 million from $130 million in fiscal 2003.
It left unchanged its December quarter estimate of a loss of 4
cents a share, and widened its fiscal 2003 profit estimate by a
penny to 17 cents.
((Vivian Chu, New York Equities Desk, 646-223-6000))
REUTERS
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08:32 ET CSCO Cisco Systems: Oct quarter will be challenging - Goldman Sachs (11.96)
Goldman Sachs continues to believe that the Oct qtr will be more difficult than previous qtr due to weak enterprise spending (especially in Japan and Europe), the difficult carrier market, and mixed messages from checks on CSCO's Oct qtr progress; believe their Oct qtr est of flat sequential sales is achievable, but the backend loaded nature of the qtr makes it too early to determine if CSCO will meet ests.
SALOMON CUTS BROADCOM <BRCM.O> 2003 EPS VIEW TO $0.03 FROM $0.29
(Reuters 09/26 05:43:30)
REUTERS
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08:22 ET JPM JP Morgan Chase estimates cut at Lehman (18.89)
Lehman believes that their initial est cut following JPM's pre-release was not drastic enough, and cuts Q3 est to $0.09 from $0.38, 2002 to $1.69, and 2003 to $2.65 (Q3 and 2002 are slightly below consensus); reasons include even lower trading results than initially expected, a higher than expected loan loss provision, and an absence of heavy investment securities gains; cuts price target to $20 from $23.
08:58 ET TXN Texas Instruments downgraded by Thomas Weisel (16.35)
Thomas Weisel downgrades to MKT PERFORM from Attractive due to the stagnant IT spending environment; cuts FY03 est to $0.60 from $0.75 (well below consensus of $0.73).