CPQ responds to PC concerns
--10:24 am - By Tomi Kilgore
Compaq Computer (CPQ: news, msgs) responsed to concerns about PC demand in Europe, after Intel's (INTC: news, msgs) revenue warning cited weakness in Europe. "Our worldwide momentum is clearly continuing and European demand is currently tracking within our expectations," said Peter Blackmore, a senior vice president in sales and services. Compaq's stock is changing hands at $29.31, which is $1.57 below Thursday's official NYSE close, but $1.44 above its composite close. Merrill Lynch analyst Steve Fortuna believes the market will "significantly overreact" to Intel's news, as his checks with PC original equipment manufacturers and suppliers suggest demand is inline with expectations on both the corporate and consumer sides. He recommended Compaq's stock, as well as Gateway's (GTW: news, msgs) and Dell Computer's (DELL: news, msgs), at current levels. DELL is dropping $3.50, or 9.2 percent, to $34.44 and GTW is $1.50 below its NYSE close at $55.50. GTW's composite close was $51.00. |
