Microsoft's vulnerability to the PC market reaffirms our belief that Microsoft's continued success depends on its ability to transition itself from a desktop software company to an enterprise solution vendor.

We remain cautiously optimistic on Microsoft as the company slowly transitions itself from its reliance on desktop software and continues to roll out its higher growth, server side software.

A continued focus on margins and little change in activity in database demand will likely keep many investors on the sidelines until some more convincing catalysts are in evidence.

Uncertainty surrounding Oracle's model does not give us confidence that the company can continue to grow earnings at a rate that would drive 20 percent or better stock-price appreciation into 2002.

Management may temper that outlook slightly given the ongoing difficulty in the PC environment.

Alcatel has continued to deliver strong quarter-over-quarter results for its IP portfolio, translating into excellent momentum in market share. According to our data, this is the fastest ramp in market share in routing history, which is remarkable. The service provider edge is a very dynamic space. The growth is greatest in the edge because this is where all the service innovation is occurring in order to satisfy the demand for new applications like IPTV. This is why Alcatel's service routing IP portfolio has hit such a sweet spot.