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Technology Stocks : Compaq

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To: PCSS who wrote (57425)4/12/1999 5:34:00 PM
From: rupert1  Read Replies (4) of 97611
 
Michael: I make comparisons like that, too. But it's second best to counting the percentage increase.

The price may go lower, but even with the new bad news, $24 is too low for this stock. It does not reflect any premium for the massive new assets acquired by the company since this time last year, assets which will increase earnings exponentially. There is no premium for Alta Vista. The shame is that just as those new assets are starting to produce net earnigns, the old assets are in a seasonal and possibly a cyclical trough.

The market buys the future. Right now it is in a state of shock about the immediate past. Perceptions will change again.

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