CPQ -- Pers Computers -- Technology
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12-Oct-99 11:13:56 Compaq Computer is leading the hardware stocks higher,
bouncing up $1 to $22 15/16. The stock has trended lower over the past two
months due to concerns regarding increased competition, supply fears from
the Taiwan earthquake, as well as company-specific organizational issues.
CPQ has not been able to recoup the 30% in value it lost earlier this year.
Analysts are expecting 2Q earnings will be on target when Compaq reports
at the end of this month. The Street will also be looking for details of
the firm's reorganization, though most expect changes will not be visible
until later this year. In today's session, volume is very active with over
9 million shares exchanged compared to the 10-day average daily volume of
10 million shares. Block trades account for 57% of the activity,
suggesting institutional investors are backing CPQ's move. The stock's
lower share price and fundamentals is appealing to GARP investors, who are
likely adding to their positions. I-Watch pre-trade data is moderate, but
illustrates that buyers continue to bid for shares as the price rises.
The stock's pop has attracted a few sellers to the market, which could cap
today's gains. CPQ has faced increased resistance over the past 6 months as
it nears the mid-$20s.
Higher interest rates in bonds are pressuring banking stocks lower. JPM
has fallen $1 3/8 to $114 3/16, PNC has lost $2 3/16 to $53 7/8, and WFC
has is $1 lower at $41 1/2. Retail stocks are also trading sharply lower.
COST has plunged $3 to $80 15/16, DH has lost $2 1/16, and GPAS is down
$1 7/16 to $36 6/4. Semiconductor stocks are adding to yesterday's gains,
providing a bit of reprieve to the NASDAQ. INTC has climbed $1 3/16 to
$77 11/16, KLAC has popped up $4 to $75, and AMAT has gained $2 1/4 to
$85. >>>>>>>> |
