World PC shipments rose 16.6% in the second quarter of 2005, according to research company IDC, vs. the second quarter of 2004, reaching 46.6 million. There is strong demand for low-cost systems, notebooks and commercial PC replacements. There is a 20% growth rate in Europe, the Middle East and Africa. In the Asia Pacific region, business investments are on the rise, and so is consumer demand.

Those data, reported in

The New York Times

on Tuesday, coupled with the market reaction to

IBM's

(IBM) - Get Report

solid earnings report after the close on Monday, simply raised the expectations bar too high for

Intel

(INTC) - Get Report

,

Motorola

( MOT) and

Yahoo!

(YHOO)

to hurdle after the close on Tuesday.

This sets the stage for the following companies reporting after the close today:

F5 Networks

(FFIV) - Get Report

is expected to earn 34 cents per share. My model shows F5, which designs software to help companies manage their Internet traffic, just 3.8% undervalued, with a positive weekly chart profile. On a negative reaction to earnings, there is risk to my weekly value level at $48.37. On a positive reaction to earnings, I show weekly and quarterly risky levels at $52.56/$53.64 respectively.

Lam Research

(LRCX) - Get Report

is expected to earn 44 cents per share. The company makes semiconductor processing equipment used in the fabrication of integrated circuits, and my model shows its stock 10.4% overvalued, with a positive weekly chart profile, making the stock a momentum trade. On a negative reaction to earnings, look for weakness into a zone of two monthly pivots at $31.57/$30.90. On a positive reaction to earnings, watch for a potential move above the 52-week high at $32.26 on the strong technical momentum, which will make shares even more overvalued fundamentally.

Qualcomm

(QCOM) - Get Report

is expected to earn 25 cents per share. My model shows shares 11.2% undervalued, with a neutral weekly chart profile. The neutral zone following earnings is between my monthly value level at $34.18 and my weekly risky level at $36.02. Qualcomm provides the digital wireless telecommunications products known as code division multiple access (CDMA) technology.

VeriSign

(VRSN) - Get Report

, which provides infrastructure services to enable people and businesses to transact across converged networks, is expected to earn 26 cents per share. My model shows the stock 29.1% undervalued, with a negative weekly chart profile. I show a weekly pivot at $28.80. A negative reaction to earnings makes $28.80 a weekly risky level, with downside potential to my weekly value level at $26.11. On a positive reaction to earnings, the upside is to my quarterly risky level at $29.97.

Richard Suttmeier is president of Global Market Consultants, Ltd., chief market strategist for Joseph Stevens & Co., a full service brokerage firm located in Lower Manhattan, and the author of

TheStreet.com Technology Report

newsletter. At the time of publication, he had no positions in any of the securities mentioned in this column, but holdings can change at any time. Early in his career, Suttmeier became the first U.S. Treasury Bond Trader at Bache. He later began the government bond division at L. F. Rothschild. Suttmeier went on to form Global Market Consultants as an independent third-party research provider, producing reports covering the technicals of the U.S. capital markets. He also has been U.S. Treasury Strategist for Smith Barney and chief financial strategist for William R. Hough. Suttmeier holds a bachelor's degree from the Georgia Institute of Technology and a master's degree from Polytechnic University. Under no circumstances does the information in this commentary represent a recommendation to buy or sell stocks. While he cannot provide investment advice or recommendations, he invites you to send your feedback --

click here

to send him an email.