Robbie, go read their 10-Q. Then pay particular attention to their discussion of liquidity. Pay particular attention to financing needs for ongoing operations. Then report back.
The first point I made was that Compaq looks like it is having cash flow problems, and in particular, I concurred with Jim in that I didn't see a source of cash sufficient to cover paying for the charges. Are you disputing that?
Which leads me to the second point I made, which was that "earnings" were created by taking a bunch of charges, and then ignoring them as one time charges. Are you disputing that?
And my final point was that if my analysis is correct, then Compaq will require some substantial source of funding to get it through this transition. I conjectured that if that happened we could see the stock price drop substantially.
So, what is arrogant about that? Do you have an insight which would cause me to change my opinion. If so, I would be happy to read it.
BTW, I posted on the Dell thread, not the CPQ thread. I am a financial analyst. The "analysts" you are referring to cannot find their gluteal muscles with both hands. Their "discoveries" are the result of guidance from the company, but if you looked at a recent article on guidance by Compaq, you will discover that it is generally over-optimistic. I am sorry that I don't have the link to that article, but I am sure that some kind soul on this thread will provide it for you if you like. Every point I made was supported by numbers provided by Compaq in their 10-Q. Conclusions and conjecture were clearly labeled as such.
Wanna fight?
TTFN,
CTC |
