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Technology Stocks : Compaq

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To: Harry Landsiedel who wrote (53742)3/17/1999 8:03:00 PM
From: rupert1  Read Replies (1) of 97611
 
Harry: The way in which he extrapolated possible 1st quarter reductions of 3-4 cents, across the following three quarters was inconsistent with his analysis. He noted the likelihood of increasing efficiencies, and the gearing up of sales on the basis of the DEC and Tandem acquistions and an expanding product line, all within a healthy economy and normal computer market. I also thought it was odd that he should measure the p/e against 2000 estimated earnings instead of the next twelve months. He sounded like an analyst who expected to upgrade his recommendation and increase his earnings estimates but couldn't find a face-saving way of doing it so soon after he joined the panic in reducing estimates. I think a lot of the penguins will be up-grading in mid-April, if not before.
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