Weekly Wrap

It seems like every company in God Bless America reported earnings this week. But most noteworthy this market week was, CNBC News anchor Sue Herera got a makeover! Wow. She got her hair cut and highlighted and it makes her look like she's lost 20 pounds. (She's probably really one of those waif anchors that doesn't need to lose an inch, but the TV adds a Dairy Queen Blizzard.)

Good News. First, it was an UP week for the Dow, Nasdaq and the S & P! Write that down. Say it again. Remember this day. (Feel free to remember Saturday, too. It's my birthday.) The Nasdaq was up 5.5%, the Dow up .6% and the S & P up 1.8%. Happy Birthday, Karin!!

CMGI (CMGI) announced bad news on Thursday... they've changed their mind on what their focus should be. Four months ago they told investors that they were going to be cash positive in four out of five of its operating segments by the end of fiscal year this July. Now they said that "might not be in the best interest of their shareholders". Excuse me? How can being cash positive not be in the best interest of shareholders? Sounds like there's trouble in CMGI-land which was reflected in it's stock price drop of almost 17% on Friday. The sky is falling.

Sun Microsystems (SUNW) reported second quarter earnings in line with analyst's expectations on Thursday, but sales came in more than $100 million short. I'm totally bummed because the Chicks hold it in our portfolio. The stock dropped 11% on Friday. CEO Scott McNealy also warned of slower growth for 2001. But come on, the company has posted accelerating growth of 22.8%, 25.4%, 35.5%, 41.8% and 60.4% during its last five quarters. No one can continue that pace. Growth for the next year is expected to come in "somewhere in the mid-30's". After listening to McNealy in the conference call (he's such a funny guy when he yells) reiterate "The company hasn't changed. We've got the same strategy, the same market position, the same products, the same people -- the same momentum, passion and energy." I'm still the same on Sun... long.
   
The last of the bad news came from Home Depot (HD). The No. 1 home-improvement chain, said fiscal fourth-quarter earnings will drop 20 percent and revenue for next year will be hurt as consumers are spending less on remodeling projects. But, I guess that makes sense that people would be holding back on any remodeling projects if they just lost the kitchen sink in the market last year. Speaking of year, have you ever looked at Home Depot's chart over the past year? It'd make for a great thrill ride at Six Flags. HD lost another 7% on Friday. Shareholders must have lost their stomachs.

Back to good news: IBM (IBM) reported a healthy and get this, greater than expected earnings report. They beat "The Street" by two cents and also had revenue that was higher than expected. They were full of good news about personal computers, software, hardware, e-commerce, semiconductors and gross domestic product. Hallelujiah! It was much needed, and the market responded with a rebound! Technology was one of the biggest gainer for the week, up over 9%. Thank you, IBM. Happy Birthday, Karin.

Another big gainer for the week was Consumer Services, or Internet companies. Juno Online (JWEB) was up 117%! AutoWeb (AWEB) was up 89%, and Internet America (GEEK) was up 81%. Say that three times, "AWEB, JWEB, GEEK". Sounds like you have a lisp while calling your kids, Arab and Jarab, geeks. (No I don't have a glass of wine in my hand right now.)

Speaking of Internet companies, I love when Chick Cheryl keeps us informed on our Chick held Yahoo (YHOO). It had a great week, and she tells us why. I have no idea how she was able to type as she is freezing her butt off in California. Because of the "rolling blackouts" her power gets shut off at will, which means her heat too.

Nortel Networks Corp. (NT) shares rose 9 percent after the biggest maker of fiber-optic equipment's fourth-quarter sales beat estimates, but like all of the other reporters, they also lowered estimates for 2001.

General Electric (GE)  also reported and their numbers were in line with analysts expectations. But, their appliance division suffered a blow on Wednesday as the Chick in Charge, Linda Goodspeed announced that she would be leaving to take over at an internet company. She said she was looking for a more creative environment, but I'm thinking that her refrigerator was running.

Chick Cheryl sure wishes her refrigerator was. Going to go open mine now and see what I can whip up for a birthday dinner.

Happy Birthday, Karin.

Chick Karin

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