Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!americast.com!americast.com!americast-post Newsgroups: americast.ibd From: americast-post@AmeriCast.Com Organization: American Cybercasting Approved: americast-post@AmeriCast.com Subject: NASDAQ Amex market Date: Fri, 20 Nov 92 13:33:51 EST Message-ID: <3.1992Nov20.133351@AmeriCast.com> 11/20/92 TITLE NASDAQ Amex market Nasdaq Resumes Advance Behind Tech Stocks Dell Jumps 21/8 On Earnings; PeopleSoft Surges On Debut Lisa Lee Freeman Buyers thronged into technology stocks yesterday, lifting the Nasdaq market as volume gushed past the 255 million share mark. The Nasdaq composite index rose 3.71 points, or 0.58%, to 638.57 -closing in on its all-time high of 644.92, set on Feb. 12. Ad- vances led declines 5-to-4 while volume swelled another 11% to 258 million shares. It was the eleventh session in a row that Nasdaq volume overwhelmed the Big Board's. By comparison, the NYSE composite index added 0.16%, while the American Stock Ex- change market value index rose 0.74% as winners topped losers 5- to-4. In trading, Dell Computer Corp., which has been on the rise since dipping to a low of 15 this summer, leaped 21/8 to 383/8 after the company posted sharply higher-than-expected earn- ings. Third-quarter earnings increased 106% to 72 cents a share. That's seven cents above the highest estimate collected by Zacks Investment Research Inc. In sympathy, Apple Computer Inc., up 21/2 on Wednesday, added another 1/2 to 581/4 and AST Research Inc.- a point to 193/4. These three PC makers were among the day's most active stocks. The Computer - Mini/Micro group, damaged by a nasty PC price war, has shown a marked improvement in recent months. The group's Relative Strength on a 12-month basis climbed to 93 last week from 26 eight weeks earlier. That means it has outperformed 93% of the 197 industry groups tracked by Investor's Business Daily. Wendy Abramowitz, an analyst at Argus Research Inc., said gross profit margins, hacked away by the price war, will improve among the top-tier PC makers. In Dell's case, although gross margins declined on a sequential basis, "it was not at the same rate as it had been in the past couple of quar- ters," she noted. The top-tier PC makers, Soundview Financial Group Inc. analyst John Maxwell explained, have restructured and lowered their expenses, enabling them to compete more effectively against the cutthroat pricing practices of third-tier companies. This has forced some third-tier firms out of business. In light of Dell's results, Abramowitz increased her fiscal 1993 estimate by 30 cents to $2.55 a share. However, she maintains her hold rating due to the stock's sharp runup recently. Maxwell, who stands by his buy trading, raised his 1993 estimate by 13 cents a share to $2.60. Irrepressible networking stocks also extended their gains. Wellfleet Communications Inc. surged 31/2 to 621/4 and Cisco Systems Inc. a point to 72. Also, Newbridge Networks Corp.- advanced 21/2 to 301/8 - a new closing high. The Canadian firm, which makes products designed to help companies build worldwide communications networks, said late Wednesday fiscal second- quarter earnings were up 500%. A new high also was struck by Tech Data Corp., which climbed 11/4 to 241/2 on a 44% increase in third-quarter earnings. Among other computer distributors, CompU- SA Inc., up 13/4 on Wednesday, added 11/2 to 35 and Babbages Inc. 11/4 to 231/2. Elsewhere in the tech group, softwares continued to rally. Microsoft Corp.- rose 2 to 94, Parametric Technology Corp. 11/2 to 543/4, BMC Software Inc. 1 to 66 and Electronic Arts Inc.- a point to 331/2. Dean Witter Reynolds Inc. repeated its buy rating on Microsoft based on Dell's strong results, which indi- cate healthy PC demand. Autodesk Inc., which has more than dou- bled since February, climbed 11/8 to 535/8. After the close, the company posted a fiscal third-quarter profit of 50 cents a share. That's well below a year earlier's 65 cents a share, but slightly above estimates. Empi Inc. rocketed 5 to 33 on news it bought out a competitor. The company acquired the assets of Medtronic Inc.'s Nortech division, which makes transcutaneous electrical nerve and neuromuscular stimulation devices for controlling pain and strengthening muscles after injury or trauma. Michael Sabbann, an analyst at Piper Jaffray & Hopwood Inc., said the deal makes Empi the clear leader in its business, with about 30% of the $180 million market. It also sharply increases Empi's distribution power by boosting the company's domestic sales force to 105 from 60. This, Sabbann said, will help Empi market two new key products. One is a non- invasive drug delivery system that uses an electrical current to force drug molecules through the skin. The other offers women with a urinary incontinence problem a much improved option to surgery. Despite Empi's sharp runup, Sabbann believes the stock has more upside potential. He repeated his buy recommendation and increased his 1993 earnings estimate by 27 cents to $1.20 a share. Outback Steakhouse Inc. climbed out of a tight trading range to a new closing high, up a point to 253/4. Outback is a leader in the hot restaurant group. Another leader, Lone Star Steakhouse Inc., jumped 2 to 311/2 and Cracker Barrel Old Country Stores Inc. 11/4 to 431/2. Newcomer Taco Cabana Inc. Class A leaped 13/8 to 191/4. The stock, which came public at $13.50 a share last month, was highlighted Wednes- day in Investor's Corner in Investor's Business Daily. Peo- pleSoft Inc.- , another IPO featured in the story, surged 117/8 points, or 143%, from its $17 issue price. The oversubscribed offering debuted with three million shares, up from 2.7 million which originally had been planned. Walnut Creek, Calif.-based PeopleSoft designs human resource management software, designed to work with local area networks. The IPO of 1.75 million shares of Lanoptics Ltd. jumped 41/2 from its $13.50- a-share issue price. The Israeli company makes wiring products for computer networks. Nu-Kote Holdings Inc. Class A, which came public at $12 a share last month, climbed 11/8 to 153/4 in active trading. Lehman Brothers Inc. initiated coverage of the office supply manufacturer with an outperform rating. Viking Office Products Inc. emerged from an eight-week base to a new closing high, ris- ing a point to 26. All was quiet on the biotechnology front, except for Immunex Corp.- , which fell 33/8 in heavy trading. On the Amex, Andrea Electronics Corp. scored another 53/8 to 283/8. The stock has gained 18 points, or 173% in the past three sessions. Sierra Health Services Inc.- , up a point on Wednesday, added another 2 to 40 - a new closing high. 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