This Stock Price Will Be Cut In Half Tomorrow — Here’s Why

September 29, 2003
Brice Wightman

Stocks were
higher Monday, with airlines, Internet,
and networking the strongest sectors. Rising consumer spending as well as upbeat comments from the
Semiconductor Industry Association are helping to boost the markets today.
Consumer spending in August rose for a fourth consecutive month. Tech issues are
showing outperformance once again after the Semiconductor Industry Association
said that worldwide chip sales rose for the sixth straight month in August.
August fund flow data show equity inflows of $22.9 billion, the third straight
month of equity inflow. Money continues to come out of taxable bond funds.

Weak today was Retail
(
$RLX.X |
Quote |
Chart |
News |
PowerRating), -0.10%.

In economic news, Personal
Income in August rose by 0.2% vs. expectations of a 0.3% rise. Personal
Spending in August rose by 0.8% as expected.

The 10-year U.S. Note
was -105 at 113 160.

The dollar was -0.86 at
93.01.

Gold was +1.30 at 382.50.

Crude Oil was +0.24 at
28.40.

Volume was
1,316,860,000 on
the NYSE, and 1,650,032,000 on the Nasdaq.

Market breadth was positive,
with NYSE advancing issues over declining issues by 2.18 and up over down volume
by 2.41. Nasdaq advancing issues over declining issues at 1.57, and up volume
over down volume at 3.33.

Top Dow stocks were:

Stocks in the news:

Minnesota Mining
(
MMM |
Quote |
Chart |
News |
PowerRating) splits 2:1
tomorrow. MMM closed at 140.31.

Apple Computer
(
AAPL |
Quote |
Chart |
News |
PowerRating)
gained 3% after the company received an upgrade from Lehman
Brothers. The firm upgraded the company form “equal weight” to “overweight”
based on a number of factors. First, Lehman cited strong back-to-school demand.
Second, the firm expects revenues to grow from Apple’s iMusic service. Lastly,
Lehman believes that Apple is at the beginning of a “significant” PowerMac
upgrade cycle.

Computer Sciences
(
CSC |
Quote |
Chart |
News |
PowerRating)
rose 2.5% after the company won a $1.1 billion contract from the US Army.
The El Segundo, Calif.-based company will provide the US Army Aviation Center in
T. Rucker, Ala., with simulator-based flight training and other related aviation
training activities.

eResearch Technology
(
ERES |
Quote |
Chart |
News |
PowerRating)
added 7% after the technology and services company raised its 2004
outlook. Due to an increase in recent contracts as well as the announcement of a
$36 million franchise agreement, the company now expects 2004 revenues and
earnings to be between $96 million to $98 million and 92 cents to 94 cents a
share, respectively. Previously, the firm had expected revenues between $87
million to $89 million and earnings of 82 to 84 cents a share.

Finnish cell phone maker
Nokia
(
NOK |
Quote |
Chart |
News |
PowerRating) rose 4% as its shares are benefiting from a positive
Barron’s article. The article cited that Nokia is facing huge competitive
pressures such as decreasing market share as well as lower operating margins.
However the shares are trading at a low PE and the company has $10 billion in
cash. The article also cited that the company is poised to benefit from
increasing cell phone markets in China, Russia, and India. In addition will soon
be entering the gaming business with its hand-held “N-Gage” portable gaming
device.

Research In Motion
(
RIMM |
Quote |
Chart |
News |
PowerRating)
gained 3% after the maker of the popular Blackberry wireless devices
reported better-than-expected quarterly results. Excluding litigation charges,
the company earned 10 cents a share, or 2 cents better than estimates. Revenues
jumped 71% to $125.7 million.

If you have any comments or
questions, please feel free to email me.

Brice
Wightman

bricew@tradingmarkets.com

This Stock Price Will Be Cut In Half Tomorrow — Here’s Why

BUY THE FEAR, SELL THE GREED

Quick Links

Company Info

Contact

Company Resources