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Technology Stocks : Compaq

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To: JGibbs who wrote (20593)3/8/1998 1:06:00 AM
From: JPolo36  Read Replies (3) of 97611
 
I believe CPQ will close higher than the open...

I will be placing an order to purchase shares at the open on Monday.

1) I believe with this piece of bad news out of the way, it would take another major piece of bad news from the company in order for this stock to go down, which I believe is unlikely. There may be another $1 - $2 downside due to actions that will be taken from analyists and other potential earnings warnings from other tech companies from the open on Monday. But I believe at prices between $22-$24 the long term opportunities/rewards will far outweigh the short-term risks.

2) After CPQ adjusts their inventory system to Optimized Distribution Model... CPQ will be able to move forward and more efficiently.

3) CQP Will benefit further from the Demand for SuB $1000 PC's

4) Fundamental Ratios:
PE P/Sales P/Book
DELL: +/- 55 4.10 37.78
CPQ : +/- 25 1.97 5.18

5) CPQ offers excellent long-term value opportunites
LONG ON COMPACT
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