Well, I was hoping the AOL post about earnings warning was only rumor, but I guess it goes to show you that some of the information on the Net can give the shrewd investor advance insight. The trouble is knowing which info is truly valid. I'm in for the long haul. Still in the black until hits the teens, and which point I will probably buy more.
I did a lot a historical review on CPQ this weekend. One of the things I looked at was their 8K filed in March 96 , (the time this thread started--you know the post which says, has CPQ seen a bottom, etc).
At that time Pfeiffer said that inventory was backed up and that they would institute aggressive price cuts to clear the channel. Analysts were shocked by such a bold move. The stock suffered a major setback from this announcement. However, when the quarter was over CPQ had made record earnings. While I don't see that happening this time around, I wonder how CPQ might fare in second and third quarters as they institute promotions which coincide with completion of the DEC merger.
I've read several articles on CPQ and opinions range from either Pfeiffer is taking a bold step towards the future on this one, or he's run out of ideas. Take your pick. I'd like to think the man who has made CPQ number one PC company in the world would have a clear vision of what he wants out of this merger. Here's hoping that Pfeiffer will once again shock analysts by returning to record profits before the year is out.
Chris |
