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Technology Stocks : Compaq

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To: Larry Myers who wrote (20192)3/7/1998 12:21:00 AM
From: Kashish King  Read Replies (1) of 97611
 
I understand these fellows are pretty good securities lawyers. These lawsuits are a poor remedy and probably end up causing more harm than good insofar as shareholders of the target companies are concerned. I would not, however, underestimate the chilling effect these guys have on securities fraud being purp'd in the first place. In that regard I'm all for them. As for Compaq, I find it interesting that when a couple of top VPs resigned some analyst helped tank the stock to $54 (pre-split) claiming that their reason for resigning had something to do with the obvious channel stuffing they wanted no part of. So apparently the shortfall that has resulted from stuffing the channel in the prior quarter was known and not the shocker being portrayed. I think management should be sent up to the big-house for a couple of months for this and I'm not even long CPQ!

milberg.com
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