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Technology Stocks : Compaq
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To: rupert1 who wrote (72906)12/1/1999 5:57:00 AM
From: rupert1  Read Replies (2) of 97611
 
To explain my "warning" headline in the last post. On the WSJ online search function which lists all articles about COMPAQ today, that article is listed as "COMPAQ PROFITS WARNING". I notice that headline is not included in the article, itself.

I find the reference to an 8 cents cost puzzling. CPQ said at the CC that the cost for this quarter may be $50 to $100 million and that it would not be a write-off but would be covered by normal operating expenses. Presumably analysts have already incorporated that in their estimates. The extra $50 million in 4Q would be "the warning"; presumably this would represent 2.66 cents not 8 cents. But the CC also referred to costs for this item in the 1Q. I am not clear if the extra $50 million in 4Q is carried forward from the 1Q or even if the original 1Q of costs are subject to upward or downward adjustments.

Anyone care to comment?
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