(FOOL GLOBAL WIRE)
LEXINGTON, Ky. (July 9): Among the new Classic IFG holdings today, Hewlett-Packard <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:HWP)") else Response.Write("(NYSE:HWP)") end if %> was the unwilling feature stock. Coming on the heels of yesterday's price cuts for its popular HP 9000 midrange UNIX system server platform and a cut in earnings estimates by SoundView Financial, the computer and peripheral maker announced today it's also cutting prices by up to 17 percent on the HP OmniBook 5500 notebook PC series.
This is HP's new Pentium-based desktop-replacement notebook PC. "The market's reception to the HP OmniBook 5500 notebook PC has exceeded our best expectations, showing strong orders since it began shipping in May," said Andrew Zaremba, product marketing manager at HP's Mobile Computing Division. "We're intent on maintaining this momentum and ensuring our products are aggressively priced in this increasingly competitive marketplace."
Investors weren't as sanguine about the company's prospects and the stock continued to get pushed around. This is one case where perhaps the relative strength model comes in handy. With HWP's relative strength ranking languishing in the 50s, there's no real momentum to capitalize on, something the Classic IFG model isn't as sensitive to as it could be.
The good news for the IFG models today comes indeed from one of the Relative Strength model holdings, Nike <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:NKE)") else Response.Write("(NYSE:NKE)") end if %>. Nike shares continued their recent advances after the company posted impressive quarterly earnings and announced that orders are well above expectations.
Nike posted $1.06 per share versus $0.78 in the year-ago period. Analysts were looking for earnings of only $0.99 per share. Perhaps the best news, though, is that the company said that worldwide orders for deliveries over the next five months were up 55 percent, compared with expectations in a range from 25 to 30 percent. Nike just keeps doing it!
Transmitted: 7/9/96 | ||||||||
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