rudeog When someone asks "what is Compaq and what do we do", everyone in the company should know.
OK - I'm asking. What would your friends at COMPAQ reply? W
Disagreement over what Capellas should or should not be saying appear to be differences in degree not in in kind.
Apart from Captain (who does seem to want Capellas to be on a constant charm offensive - or hire someone to do it for him) most complaints are that Capellas has not given even the normal guidance. It is not only analysts who would like to know if Capellas had any comment on the average 4th quarter estimates, as they prevailed at the time of the CC, but shareholders large and small. He did not say he was comfortable or uncomfortable nor nor did he give any general guidance beyond saying that 4th quarter 99 is unique in its lack of visibility, even though its first two weeks were good. Since the Street traditionally seizes on any negatives in a CEO's statements, it is not surprising that institutions have either sold off or become cautious. If Capellas is in a fog about 4th quarter why should they invest their money in COMPAQ?
The technical damage done to the share price might also do damage to COMPAQ's general image and market share and Capellas has an obligation to prevent unnecessary damage.
To say that Capella's silence is part of a well-thought out plan to let results speak for themselves without commentary from him is to make a virtue out of a necessity. I would think that if he had definite good news of which he could be confident, he would broadcast it at the drop of a hat.
I think there is some truth to the theory that he cannot afford to be wrong, and although he thinks that 4th quarter will be ok, he cannot guarantee it and would prefer to keep expectations low. As I said, I think it is a difference in degree rather than kind and I think he has got the degree wrong. I would also expect that he will correct it within the next 4 weeks by issuing some guidance. |
