Conference 7.286::digital

    
    The whole market is up. Digital is just riding the wave crest. This
    trend will continue, IMHO, for another couple of weeks. Then when the
    moons gravitational pull causes the tides to subside, and birds to
    navigate, the market will stabile. Thus the ever continuing saga of
    "why is our stock so volatile, today...".
    
    It's the economy ....<bleep>. Not to be taken personal, mind you.
    
    Mike Z.

    re. .1
    
    IMHO, it is the new tax law for 1996 not the current economy.  My
    understanding is that in 1996  income tax from capital gain will be 
    slashed so people are buying stocks this year and sell them in 1996 for
    less taxes.  If I am wrong, please do not hesitate to correct me
    because then I will sell my share today.

    
    rep .1
    
    >>> and birds to navigate,  
    
    
    	These must be Sea Gulls or Penquins!  :>)
    
    
    Sorry I just couldn't resist.
     
    /art

    Nope.  It's fundamental product quality that causes Digital stock to go
    up.  In the last month Digital has shown all analysts who may have
    doubted Digital AlphaServers that we have: 
    
      3194.4  tpmC @ $196/tmpC (the lowest cost tpmC ever)
      9414.06 tmpC @ $316/tmpC (the highest perf for a single-node system)
    
    See KENT::TURBOLASER 414 and 416
        VTX IR document id PR00F0
    
    (Now when the stock goes down - yes, I'll blame that on random forces
    of nature or Wall Street.)
    
    	/john

    Does anyone know what happened to the Discussion on Digital_invest note
    10. I know it is still there but no one has written in it for a while.
    I am asking here because I am not privileged to write in the other
    note.
    :Kevin.
    
    

    It moved to HUMANE::DIGITAL_INVESTING
    

    Thankyou :Kevin

    The feeling is the stock jumped on the release of the Microsoft
    database performance results and the resulting 'gee, Alpha really does
    make a difference'.  The market as awhole are up on the belief that the
    FED will cut interest rates, which is pushing up the bond market and
    stocks too.  If this is true, it will help borrowers (credit cards,
    mortgages, etc.) but hurt savers (savings account, CD's, etc.).
    
    As always, your investing mileage may vary.

    Don't feel that it is directly due to any product announcements or
    benchmark results.  That is not what is fueling the current wave of
    "hysteria" in the markets (how else do you explain Netscape at
    >$140/share, with a P/E approaching 400!!!)  Pure and simple, a
    variety of brokerage houses either recommended Digital, or were neutral
    on them, this week.  Not a one had a negative rating.  That will drive
    up your stock price, along with a healthy movement to tech stocks.
    
    Chuck

and do not forget the emp stock purchase should help too!

-- Guy

>      <<< Note 4306.10 by CGOOA::BARNABE "Guy Barnabe - Digital Canada" >>>
>
>and do not forget the emp stock purchase should help too!

No, the only effect that the ESPP is likely to have on the market
is to DEPRESS the price.
ESPP shares are apparently NOT purchased in the open market, so they do not
serve to "bid up" the price of shares.
Apparently they ARE sold on the open market, so they can serve to dilute
and "bid down" the offer price.

But there aren't enough ESPP shares sold at once to have a substantial effect 
anyway.

- tom]

    re .9                      
    
    Actually tech stocks ( other then Internet plays ) have been cooling
    off significantly since late July. For instance, Intel, Microsoft,
    Texas Instruments, Motorola, Micron Technology are well off their
    highs.
    
    While Digital stock has performed strongly the last ten days INTC and
    MSFT have been flat to slightly down.
    
    Therefore, at this point in time DEC is rising on its own merits rather
    than riding a "high tech" wave in the stock market.

    re. 9
    
    "hysteria"
    
    A market trading at an average PE ratio of 14 is not hysterical by
    historical standards.
    
    As far as NETSCAPE is concerned, their is nothing wrong with a high PE
    ratio as long as there are no earnings disappointments in the future,
    in which case the stock would be crucified.  It is conceivable that at
    current prices, NETSCAPE could be cheap if it lives up to expectations
    and becomes the dominant force in Internet interfaces, controlling the
    standards and direction of other vendors products.  Only time will
    tell.  Of course, I would not touch it with a 10 foot pole.  I also
    said that about 100 points ago, so what is too high?

    re. 13
    
    You're right, my comment around hysteria was directed at the Internet
    stocks, and not the market in general.  I also said I wouldn't touch
    Netscape at the $50-60 range; so that tells you my pronosticating
    ability, which I thought at one time was fairly good.
    
    We were vindicated a little yesterday, though, when Netscape was down
    about $20 at noontime.  How you can value them >than Apple, when they
    haven't made dime 1, is beyond.  If it wasn't, we wouldn't be talking,
    and I'd be sitting in the Carribbean somewhere.  Take it easy.
    
    Chuck

    Very good article in today's WSJ, first page of section C, on the
    valuation of stocks like Netscape and the high PEs.  Is Netscape to
    high?  It all depends on many variables.  Good article.