One more (and apologies if any already posted as I thought
one had been today).
John Hancock's Klee on Compaq Computer
Corp.: Company Comment
Bloomberg News
June 17, 1999, 1:15 p.m. PT
Boston, June 17 (Bloomberg) -- The following are comments
from Marc Klee, co-manager of John Hancock's Global Technology
Fund, on Compaq Computer Corp.
The biggest personal computer maker said today it will lose
as much as 15 cents a share in the second quarter, its first
quarterly loss from operations since 1991. Compaq has been
hammered by plummeting PC prices and high costs.
John Hancock owned almost 377,000 Compaq shares as of March
31.
''The worst is over. The downside is definitely limited.
This is not a company that's up on air and betting on the future,
like a lot of the Internet stocks. Somebody who buys the stock at
these prices and holds on for at least a year is going to be very
pleased. I'd be a buyer of the stock here.''
Klee declined to comment on whether his fund was buying more
Compaq shares.
The short term, though, probably will be rocky. ''The market
is going into a 'show-me' phase. It wants to see proof'' that
cost-cutting efforts are working, Klee said.
Klee said he was encouraged by statements that Compaq
Chairman Ben Rosen and other executives made in a conference call
today.
''They said the loss will be 'up to' 15 cents. They didn't
say '15 cents.' I took that to mean it may be somewhat less
onerous.''
Klee said he also was encouraged by Rosen's statements that
Compaq's board is pleased with candidates it has interviewed to
replace ousted Chief Executive Eckhard Pfeiffer.
''They really want to make sure they find the right guy.
These guys (Rosen and the two other directors sharing the chief
executive position) who are in there are working real hard at
this.'' |
