hio & thread,
A slew of analyst reports follow...
CPQ: Intra-Day Special Call
01:15pm EST 26-Feb-99 Merrill Lynch (Steven Milunovich)
Pc Industry
o Following our earlier comments on Compaq (CPQ, $35 11/16, B-3-1-7)
we spoke to other PC companies.
o We believe Compaq is having two problems: 1) Medium and small
business market and 2) Problems in channel managing inventory.
o We spoke to Dell (DELL, $79 1/16, B-2-1-9) and it is seeing
strength in small and medium business- its challenge is high end
corporate market and revenue.
o For IBM (IBM, $167 1/2, B-1-1-7) view of unit growth is
unchanged.
o According to IBM, Y2K is not as big of an impact as much as
Compaq is expecting.
o Hewlett Packard (HWP, $67 9/16, B-2-2-7) experienced some
slowing in PC growth at the end of the last quarter and is seeing a
bit of weakness in medium and small business.
o There is a little weakness in unit demand in the industry with
most impact in medium and small business segment
o In our view this is not an industry issue, Compaq may be having
some company specific problems and believe there may be some issues
with Compaq going direct.
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