The Daily Workshop Report
by Robert Sheard (TMF Sheard)

LEXINGTON, KY. (June 03, 1997)

And Seagate makes three.

Today SEAGATE TECHNOLOGY <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SEG)") else Response.Write("(NYSE: SEG)") end if %> joined NIKE <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: NKE)") else Response.Write("(NYSE: NKE)") end if %> and INTEL <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: INTC)") else Response.Write("(Nasdaq: INTC)") end if %> in warning the Wall Street community that the current quarter's performance won't be up to snuff.

Analysts believe the slowing demand for Seagate's disk drives is company specific, the result of intense competition from rivals WESTERN DIGITAL <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: WDC)") else Response.Write("(NYSE: WDC)") end if %> and QUANTUM <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: QNTM)") else Response.Write("(Nasdaq: QNTM)") end if %>, but the announcement, coming on the heels of Friday's announcement by Intel, dragged technology stocks lower on the fear that a slow-down might be in the works for the entire personal computer industry.

Going the other direction today were some of the large-cap sectors, including bank stocks, drugs, and some of the oil companies, perhaps a move by investors into more defensive stocks again.

The question now is whether the tech stocks are in for their typical summer slowdown (the June Swoon) or whether the analysts are correct in attributing the Intel warning to a product transition and the Seagate warning to specific competitive factors.

Stay tuned for the monthly model updates this weekend. Our June recording period begins with the numbers at Friday's closing bell.

Monthly Growth Screens
(Jan. 3 to present)
27.12%  Relative Strength  
13.02%  S&P 500 Index  
11.83%  Low Price/Sales  
-2.37%  YPEG Potential  
-4.11%  Investing for Growth  
-6.07%  Unemotional Growth  
-14.99%  EPS Plus RS  
-24.20%  Formula 90  

Annual Value Screens
(Jan. 1 to present)
14.72%  Dogs of the Dow  
13.40%  Dow Jones Ind Avg  
8.29%  Beating the S&P  
6.55%  Dow Combo  
6.34%  Unemotional Value  
6.34%  Beating the Dow  
-0.33%  Foolish Four