SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Compaq
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: rupert1 who wrote (76632)1/25/2000 10:25:00 PM
From: rudedog  Read Replies (1) of 97611
 
Victor -
Very cogent post. The analysts were expecting less revenue and less growth than CPQ reported, and were upgrading based on those assumptions. They work mostly by the numbers and they will not be fooled or confused by the press. Not to say they are such smart guys - they work a lot better with 20-20 hindsight - but CPQ beat expectations, it can't be anything but good news.

Furthermore the upside was "predictable" but on the high side of the estimates - exactly where good guidance would put it. Perhaps the street is getting more comfortable with this style of guidance.

I especially like the conservative guidance around 1Q - as you point out, this is a seasonal pattern and nothing unusual. If the company continues to concentrate on cutting costs, building revenue responsibly, and investing in both the existing high margin businesses as well as the visible high flyers, the investment community will be a lot more comfortable with assigning a higher multiple - right now there is a risk discount on the stock.

I would be happy with 40's mid year and 50's late in 00 or early in 01, especially if CPQ once again becomes one of those stocks (like INTC and MSFT) that I rarely look at or think about - just occasionally check to see how well it's doing.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News