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Technology Stocks : Compaq
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To: Captain Jack who wrote (80154)3/24/2000 2:15:00 PM
From: MeDroogies  Read Replies (3) of 97611
 
I've read alot about the rumor over the last 24 hours, and I have to believe that CPQ's management is right to remain quiet.
It doesn't pay to respond to rumors...a good example (though extreme) is Clinton. You're always better off keeping quiet and letting the truth come out. It's a short term hit versus long term damage, and the damage comes when it becomes possible to float rumors with impunity, knowing management has to respond to them. When they stop responding...they lose credibility long term. This management recognizes the credibility gap that exists, and realizes that, rather than get caught up in constantly denying rumors, it is better to bear the brunt of the problems upfront.
When (if) MC doesn't warn tonight, investors will return. Bear in mind, if 28 is as low as we go...the lows are getting higher...and that's a positive trend.
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