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Technology Stocks : Compaq
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To: Mohan Marette who wrote (14284)1/21/1998 9:16:00 AM
From: monu  Read Replies (1) of 97611
 
Mohan,

I think it is based on diluted. If I am not mistaken, when IBM reported their earnings yesterday, they said 2.16. I believe that was under the new "basic" method and the street reacted negatively because they were using the previous "diluted" method, which was .04 less than expected, saying in esssence that IBM actually made 2.11. So in effect, cpq really did beat the estimates (based on the dilution method) they were looking for by .01. Hope this helps and if I am wrong someone correct me.

Regards,
Joe
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