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Technology Stocks : Compaq

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To: S.C. Barnard who wrote (25882)5/8/1998 1:56:00 PM
From: Eddie Kim   of 97611
 
Cpq is taking a breather, but more realistically Compaq needs to start executing on the battle plan. maybe we'll get a couple more upgrades this month which will drive the stock up a couple of more points, but I think in order for CPQ to make new highs it needs to start showing the street that all this talk is a lot more than just that.

I hate to see all the techs rally except for CPQ. All the day traders shift focus from CPQ to whatever. I would really like to see a nice market correction before we head into summer.

The May 32.5 calls are trading at 5/8 x 11/16 with one week left until expiration. Not a lot of premium given that CPQ is nearly at the money. I think we close below 32.5 next week if no major Compaq announcement or upgrade occurs.

-Eddie
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