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Technology Stocks : Compaq

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To: hlpinout who wrote (50923)3/2/1999 6:35:00 AM
From: rupert1  Read Replies (4) of 97611
 
Morning HIO: The WSJ article hit the nail on the head and voiced my earliest thoughts when I heard the news on Friday. There are at least three ways of interpreting it.

(1) CPQ genuinally did not think that in agreeing with an analyst's comment about a slow start to the quarter that it was issuing material news, because the strong sales for late February, the good indications for March and the relatively low cost of the January slowdown (1 cent) did not then and does not now justify a definitive warning.

(2) CPQ's representative at the meeting made an error in revealing information that was not confirmed, and revealing it in a manner which made it vulnerable to misinterpretation.

(3) CPQ deliberately misled shareholders and the market (a) in its expectations for growth in the first quarter and (b) the actual rate of growth.
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