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Non-Tech : 1000% returns are cool !!!

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To: If only I'd held who wrote (653)6/8/2000 8:01:00 AM
From: marquis103  Read Replies (1) of 3326
 
CPQ. As a long suffering holder of Compaq stock, I was happy to see this article in Briefing.Com yesterday. Russ

Compaq Computer (CPQ) 27 1/8 -3/4: Unlike most tech stocks, CPQ held up relatively well during the recent carnage... In fact, stock has spent most of this year confined to a relatively narrow band (25-30)... Based on the stock's relative strength during the correction and growing earnings momentum, Briefing.com contends that CPQ is well positioned for an upside break-out over the next month or two... One potential catalyst for the breakout is this quarter's earnings report (on or about 7/25), as CPQ expected to post a significant improvement in year/year results (gain of $0.21 v. loss of $0.10)... Cost reductions and improved product mix keys going forward... As Briefing.com noted in a Story Stock several weeks ago the key to CPQ's long-term performance will be the acceptance of its new server line... Earlier this week, CPQ unveiled its ProLiant DL360 ultra-thin, 2-way server, as well as its ProLiant DL580 and ML570 server lines... Though a little late to the game, CPQ now has an attractive array of higher-end server products to compete with likes of IBM and Sun Microsystems... If CPQ is
successful in stealing market share, company's multiples likely to increase... Right now firm selling at a
relatively cheap 25x and 18x estimated FY00 and FY01 earnings of $1.07 and $1.50... Stock's p/s ratio of 1.27 is also well below that of industry peers... A decisive move above 30 on increased volume would position CPQ for an intermediate-term run at the 37-40 area... It's been a recovery long in the making, but CPQ has finally turned the corner and is ready to start outperforming the market once again-- Robert Walberg, Briefing.com
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