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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: rupert1 who wrote (63317)	6/17/1999 8:56:00 AM
From: Windseye	Respond to of 97611

<<<You are referring to a Kumar opinion. Although he said it "could" be a loss - he was uncannily accurate - again changing his mind suddenly. It is clear to me that he is getting privileged information not available to shareholders. I think the SEC should investigate.>>> Yes, and all foxes should be thoroughly examined by the "fox dining and edible consumer management board"...

To: rupert1 who wrote (63317)	6/17/1999 9:02:00 AM
From: Aitch	Read Replies (2) \| Respond to of 97611

Hi Victor, With reference to Kumar and privileged information possibly gleaned on the QT, have a look at this note. I have highlighted the relevant section: CPQ: Another Exec Is Out; Expect Management's New Plan in Next Several Days 10:29pm EDT 16-Jun-99 BofA Montgomery (K. King) o SVP of Human Resources resigns -- another member of the old guard is gone. o Continue to expect announcement of the new plan developed under the Chairman's interim team in the next several days. o Think in the near term it's more likely we'll see a big restructuring charge -- which could be viewed as positive -- than a big inventory write- down -- which could be viewed as negative. o Maintain BUY on our continued optimism about the longer-term outlook and the market's low expectations for the near term. After the close today Compaq (CPQ, BUY, $22) announced the retirement of Hans Gutsch, its SVP of Human Resources. As Gutsch's retirement begins immediately it appears this was another in a series of forced resignations under Chairman Ben Rosen's interim management team. This isn't a surprising move as Gutsch was viewed by insiders as an entrenched member of the "old guard" under Eckhard Pfeiffer, Compaq's ex-CEO. As we discussed last Friday, we expect that in the next several days Rosen's team will come forward with a new plan that includes the first longer- term financial guidance the Street has received since January. We believe near- term guidance could include substantial restructuring charges intended to lower Compaq's expense base going forward, which investors could view as a net positive. Despite recent speculation, we haven't seen evidence of a need for a substantial inventory write-down, which, in contrast to a restructuring charge, investors could view as negative as it would point to continued execution foul- ups and provide no forward benefit. We maintain our BUY on Compaq. The near term outlook is uncertain because the company went quiet with Wall Street eight weeks ago, at the time the interim management team stepped in. Still, we remain optimistic in the longer term about Compaq's enterprise computing and services strategy and think execution risk should diminish as changes under new management take hold. With 1998 revenues of $31 billion, Compaq is the worldwide market leader in PC's. Headquartered in Houston, TX, the company has manufacturing in the U.S., Scotland, China, and Brazil. Compaq's revenue split by geography for 1998 is estimated at 54% North America, 32% Europe, 6% Asia Pacific, 4% Latin America, and 4% Japan. Pro forma 1998 revenues for Compaq and Digital Equipment Corporation (acquired in June 1998) combined were $36.5 billion, making Compaq the world's second largest computer company.