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Wednesday, October 01, 2008
Tech Stocks Retreat In Early Trading
Rex Crum
MarketWatch Pulse
SAN FRANCISCO -- Technology stocks were mostly in the red in early trading Wednesday as the sector remained volatile ahead of a scheduled U.S. Senate vote of the $700 billion Wall Street bailout package. Among bellwether tech stocks, Hewlett-Packard Co. fell 23 cents a share to $46.02 after the company said it would pay $360 million to acquire privately held LeftHand Networks Inc., a maker of storage virtualization products. Other losses came from Microsoft Corp. , Cisco Systems Inc. , Apple Inc. and Advanced Micro Devices Inc. . The tech-heavy Nasdaq Composite Index fell 19 points to 2,073.
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Most folks judge the health of a business by the revenue that comes in through sales. But not all revenue is equal. Companies can grow their sales by buying other companies, which means you don't get a clear view of how the real sales trends are moving.
So, many analysts, particularly those who look at retail, try to gauge what¿s known as "organic" growth, by looking at same-store sales. These are sales only at outlets open more than a year, so the metric can exclude any sales jump that comes from opening new locations. Retailers release same-store sales (which are frequently called "comps" since they're a true comparison from the previous period) every month.
Retail, incidentally, isn't the only industry to look at same-store sales. Hospital companies, also use the metric, to gauge how existing hospitals are performing compared to ones they just built or acquired.






