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

To: Captain Jack who wrote (65615)	7/23/1999 2:26:00 PM
From: dav	Read Replies (1) \| Respond to of 97611

RESEARCH ALERT - ABN AMRO on Compaq's Capellas CHICAGO, July 23 (Reuters) - ABN AMRO said on Friday it would not be surprised to see short-term weakness in the Compaq Computer Corp. (NYSE:CPQ - news) share price after its promotion of Michael Capellas to chief executive. -- Analysts Jonathan Ross and Robert Chen said in a report the market may take Capellas' appointment badly in the short-term because the decision to make an internal hire may be taken negatively. -- ''The market ... will probably deduce (correctly or incorrectly) that the reason Mike Capellas was tapped for CEO after a long external search is because the company failed to attract an outside candidate,'' the analysts said. ''The market may see this as an indicator that problems at the company are even worse than is apparent.'' -- The analysts said they would not be surprised to see short-term weakness in the share price until Capellas is able to prove himself as being up to the task at hand. -- Capellas is articulate, smart and marketing-savvy, the analysts said. ''Over the long-term, Mike is as qualified as anyone to turn Compaq around, but success is not guaranteed.'' -- The analysts said they do not think any turnaround will become evident until the fourth quarter this year at the earliest. -- Compaq shares were off 1/2 to 24-1/2 in early afternoon trading.