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Technology Stocks : Compaq

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To: peacelover who wrote (18540)2/28/1998 12:49:00 PM
From: John Koligman  Read Replies (2) of 97611
 
Peacelover - Satyr is correct in one respect. This stock was in the doghouse long before the Smith Barney downgrade. In my opinion, it has not traded in a 'normal' fashion since the day earnings were announced in October. Compaq exceeded estimates that day, announced a split, and CFO Mason has been making positive comments ever since. Yet, the stock promptly dropped 27 points. Compaq's peer companies have recovered nicely and one (that shall remain nameless <gggg>) has soared to a level where it is worth more than Compaq itself. Look at a chart of Compaq, the stock is around 8 points off it's lows of last fall. What would you term this kind of performance from the PC 'market leader' in an environment where the DOW has rallied 1000+ points.

John
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