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Technology Stocks : Compaq

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To: Dr. David Gleitman who wrote (35849)11/5/1998 1:09:00 AM
From: cbstock  Read Replies (1) of 97611
 
COQ has been and is a stock that is very heavily driven by the options market. Right now the call options and the put options say that this stock will be around 31 at expiration this month. Until the accumulation (volume) overwhelms the options traders on the CBOE then this stock will continue to be a laggard and very disappointing to all of us unless we trade it. Every time they sell a call option position they hedge by selling the stock short.

I have both bought , sold and held the stock, (currently 1000shrs) and expect the next 6-8 weeks to show upward movement. Wall Street is just not ready to begin to give CPQ a good multiple yet. There are currently 20 strong buy analyst recommending the stock on Zacks. That is a large Number. Do not despair. The smart money is starting to leave DELL because there is more value in CPQ.

Regards

cbstock
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