"there is more to the story"
5fer lied to board.
regards
the-adviser.com
Dear Clients and Investors:
This report was issued on 4/18/99 at 11:17 PM
EST.
While the rest of Wall Street will wake up
stunned, The-Adviser.com first
informed readers last week that a major
restructuring was going on at
Compaq. See the-adviser.com.
On Sunday, the CEO and CFO announced their
resignations. According to well
placed industry sources, the resignation of the
CEO was a complete
surprise and was the result of a call to the
Board of Directors to inform
them that the pre-announcement of earnings issued
only 9 days ago - was
wrong. The CFO, which had previously informed the
Board he was leaving,
was not actively involved in Compaq's operations
for the past several
weeks. When informed that the CFO was going to
leave, the Board had asked
Eckhard Pfeiffer, the CEO if someone was watching
the ship and he
indicated he was in charge and that there no
problems that were not
previously reported. The final accounting
procedures at Compaq resulted in
additional inventory reserves and reversals of
sales previously thought
valid. That resulted in the phone call to the
Board. The Board felt lied
to and demanded that new leadership be brought
in. We are working on
additional details and will post to our web site
the-adviser.com when we can gain
additional confirmations.
Our scoop on Compaq is not our only one this
week. We had our analysts
look at the ATM business and in particular -
Diebold and NCR. We expect
strong earnings from NCR and have prepared a new
research report on the
ATM industry at our site
the-adviser.com.
Our Top Ten Picks for 1999 continued to
outperform the market. Our picks
are up 31.5% for the year as compared to the S&P
500 index that is up only
7.5%.
Our home improvement stocks picks, issued on
4/5/99 are already up 10% as
our group. These 29 stocks have significant
upside through the early part
of the summer. You may want to check these stock
picks at our web site on
http:///www.the-adviser.com.
We continue to recommend ATT, IBM and Intuit. We
are also increasing
positions in Phillip Morris, RJR Nabisco,
Citibank, Fleet and Key Bank.
Next week, we are going to profile Yahoo! and we
are working on an
exclusive story that will come close to topping
Compaq's story. |
