NEW YORK -(Dow Jones)- Compaq Computer Corp. shares were under pressure Wednesday, and market sources said the stock's tumble was partly due to a downgrade issued by Donaldson Lufkin & Jenrette Securities Corp.
A DLJ source said the firm cut the stock to "buy" from "recommended list buy." The analyst and Compaq weren't immediately available for comment.
Also at play were the continuing repercussions from Tuesday's 29% plunge by Oracle Corp. (ORCL), which struck at much of the technology sector, and a conference call by MicroAge Inc., in which the computer reseller noted a higher-than-expected inventory of Compaq computers, market sources said. Oracle reported second-quarter earnings on Monday which were below Wall Street estimates.
MicroAge Chief Executive Jeff McKeever said the company's channel inventory was in line except for Compaq. He said Compaq has also approached MicroAge and other major distributors about taking on more product.
In afternoon trading, NYSE-listed Compaq shares (CPQ) were off $3.875, or 6.11%, at $59.50, on volume of 15.9 million, compared with average daily volume of 10 million. MicroAge shares were also down. In afternoon trading, shares (MICA) were off $5.125, or 24%, at $16.563, on Nasdaq volume of 2.1 million, compared with average daily volume of 232,200. The company Wednesday morning reported fiscal fourth-quarter net income of 40 cents a share, short of a First Call Inc. estimate of 43 cents.
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Transmitted: 12/10/97 15:09 (L100ZYSd) |
