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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Shadow who wrote (136465)	7/13/1999 3:23:00 PM
From: nolimitz	Respond to of 176387

Dow just went Green. Naz moving up? What an ugly day nolimitz

To: Shadow who wrote (136465)	7/13/1999 3:25:00 PM
From: TechMkt	Read Replies (1) \| Respond to of 176387

The closer you look at CPq, the worse it looks. DELL mentioned favorably at the end. Fez __________________ Compaq Struggles With Dwindling CEO Candidates, Losing Business Houston, July 13 (Bloomberg) -- Compaq Computer Corp.'s quest for a new chief executive is dragging on longer than some analysts expected and the No. 1 personal computer maker may lose more money and customers if it doesn't hire a new leader soon, analysts and investors said. Two candidates courted by the board, Greg Brenneman of Continental Airlines Inc. and Ray Lane of Oracle Corp., took themselves out of the running. Their withdrawals leave Houston-based Compaq struggling to find a high-caliber CEO willing to take on the task of turning around a company where sales are falling and losses are now expected. Chairman Ben Rosen ousted CEO Eckhard Pfeiffer in April after a series of disappointments capped by a warning that first- quarter earnings would be half what was forecast. Analysts said lack of permanent leadership is causing the computer maker to lose customers as it attempts a planned restructuring, makes job cuts and loses more top executives. ''It's like a headless chicken,'' said portfolio manager Bill Schaff of Bay Isle Financial, which recently sold its Compaq shares at a loss because of the situation at the company. ''You can't run a company of that size in a changing industry without leadership.'' Compaq warned last month that it expects to have a loss of as much as 15 cents a share in the second quarter, its first loss from operations since 1991. Some analysts expect the losses to continue through at least the third quarter. The stock has languished in the mid- to low-20s since Compaq said first-quarter results would lag analysts' expectations. From a closing high of 49 1/4 in January, Compaq lost more than half its value, falling as low as 21 3/16 in mid-June. Last week, the stock gained 15 percent amid optimism that the company will rebound in the second half. Compaq rose 1/8 to 26 9/16 in midday trading today. For its part, Compaq won't comment on the status of the search. ''We have no schedule or timetable,'' said spokesman Alan Hodel. Second-Half Importance Getting management in place soon is important, analysts said, because much of the PC industry's business is done in the second half of the year, with strong back-to-school and holiday sales driving demand. ''The opportunity cost of missing the second half of the year is huge,'' said analyst Ashok Kumar of U.S. Bancorp Piper Jaffray. He said Compaq is losing large corporate accounts because it's distracted. ''They cannot afford to let someone like Dell (Computer Corp.) into their accounts.'' Compaq already had been losing sales in corporate accounts in the first quarter, according to ZD Market Intelligence, as Dell boosted sales and overtook Compaq as biggest vendor in that market. Dell is expected to see sales rise in the second quarter, while Compaq may see further declines, ZD said. Rosen is expected to unveil details of a restructuring, including job cuts, when the company reports earnings later this month. Compaq already has streamlined distribution, sold off a majority stake in its AltaVista Internet unit and reorganized its sales and corporate structures. Several of Compaq's highest-level executives have left, including Chief Financial Officer Earl Mason, who resigned the same day as Pfeiffer. Senior Vice President John Rando, who ran the services business, left July 1; John Rose, head of the enterprise computer business, resigned last month; and Michael Heil, head of worldwide sales, left in late April.