<BREAKFAST WITH THE FOOL>
Thursday, February 4, 1999
"A leader has to have the vision that will let him take 2 and 2 and make 5." -- Leonard Stern
Intel-Analog Double Team
Jumping feet first into the lucrative and fast-growing digital signal processing (DSP) market, Intel <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: INTC)") else Response.Write("(Nasdaq: INTC)") end if %> is teaming up with Analog Devices <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: ADI)") else Response.Write("(NYSE: ADI)") end if %> to develop a new DSP core designed to process video, image, voice, and data in communication and computing devices. DSPs convert analog signals, such as sound and images, into digital signals for such uses as modem or cellular phone transmission.
For Intel, the alliance could fill a crucial product gap as it tries to move beyond just making microprocessors for computers. At the same time, the partnership with a company with 21 times its revenues could boost sales for Analog Devices, the third-largest DSP maker behind Texas Instruments <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: TXN)") else Response.Write("(NYSE: TXN)") end if %> and Lucent Technologies <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: LU)") else Response.Write("(NYSE: LU)") end if %>. Intel and Analog Devices will immediately combine design engineering teams to form a joint group in Austin, Texas, and the companies expect to complete the first core DSP design in the second half of 2000. The two companies will separately market and sell products based on the design.
In a StockTalk interview with the Motley Fool yesterday, Texas Instruments (TI) CEO Tom Engibous said increased competition is to be expected in the booming DSP market. TI is the clear leader in the DSP market with a 45% market share. Engibous said alliances such as the one between Intel and Analog Devices and the previously announced deal between Lucent and Motorola <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MOT)") else Response.Write("(NYSE: MOT)") end if %> won't necessarily yield better products, besides which they won't come to fruition until next year. In the meantime, TI intends to continue to develop and improve its products to maintain and increase its market share. Look for a transcript of the StockTalk interview later today.
News to Go
January Same-Store Sales:
American Eagle Outfitters <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: AEOS)") else Response.Write("(Nasdaq: AEOS)") end if %> -- up 33.5%
Ann Taylor <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: ANN)") else Response.Write("(NYSE: ANN)") end if %> -- up 13.3%
BJ's Wholesale Club <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BJ)") else Response.Write("(NYSE: BJ)") end if %> -- up 4%
Bombay Co. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BBA)") else Response.Write("(NYSE: BBA)") end if %> -- down 11%
CarMax <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: KMX)") else Response.Write("(NYSE: KMX)") end if %> -- down 1%
Circuit City Stores <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CC)") else Response.Write("(NYSE: CC)") end if %> -- up 8%
Costco Cos. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: COST)") else Response.Write("(Nasdaq: COST)") end if %> -- up 11%
Dollar General <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: DG)") else Response.Write("(NYSE: DG)") end if %> -- up 3.2%
Footstar <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: FTS)") else Response.Write("(NYSE: FTS)") end if %> -- up 13%
Gymboree <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: GYMB)") else Response.Write("(Nasdaq: GYMB)") end if %> -- up 11%
Haverty Furniture <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: HVT)") else Response.Write("(NYSE: HVT)") end if %> -- up 10.1%
Lowe's Cos. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: LOW)") else Response.Write("(NYSE: LOW)") end if %> -- up 6.5%
The Limited <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: LTD)") else Response.Write("(NYSE: LTD)") end if %> -- up 11%
Paul Harris Stores <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: PAUH)") else Response.Write("(Nasdaq: PAUH)") end if %> -- up 11%
Pier 1 Imports (NSYE: PIR) -- down 5%
Sharper Image <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: SHRP)") else Response.Write("(Nasdaq: SHRP)") end if %> -- down 4%
Sunglass Hut <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: RAYS)") else Response.Write("(Nasdaq: RAYS)") end if %> -- up 11.1%
Talbots <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: TLB)") else Response.Write("(NYSE: TLB)") end if %> -- down 12.4%
Wal-Mart <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: WMT)") else Response.Write("(NYSE: WMT)") end if %> -- up 10.3%
Earnings Announcements:
Colgate-Palmolive <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CL)") else Response.Write("(NYSE: CL)") end if %> -- Q4 EPS: $0.73 vs. $0.63 last year; estimate: $0.72
CompUSA <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CPU)") else Response.Write("(NYSE: CPU)") end if %> -- fiscal Q2 EPS: $0.17 vs. $0.36 last year; estimate: $0.16
Maytag <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MYG)") else Response.Write("(NYSE: MYG)") end if %> -- Q4 EPS: $0.75 (before charges) vs. $0.54 last year; estimate: $0.71
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Yi-Hsin Chang (TMF Puck), Writer
Jennifer Silber (TMF Amused), Editor