Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: csm who wrote (67518)	9/10/1999 6:37:00 PM
From: Mang Cheng	Respond to of 97611

"Compaq's Capellas Doubles His Stake" By Monica Rivituso September 10, 1999 5:12 PM A VOTE OF confidence? Maybe. But news today that new Compaq (CPQ) CEO Michael Capellas boosted his stake in the troubled computer maker certainly lit a fire under the stock. Compaq shares soared ahead nearly 10% today after the Federal Filings newswire reported that Capellas had more than doubled his stake in the company. Capellas purchased 222,917 shares of stock at $22.39 apiece, raising ownership in the company to 425,917 shares, or $10.7 million at today's closing price of 25 3/16. The catch is that Capellas didn't exactly buy all these shares himself. Compaq supplied him with a grant to purchase the stock, according to Brian Humphries, an investor relations representative. "That will happen in these cases where you have a new CEO come on board," Humphries said. Capellas seems to be earning his keep, at least. He was in Europe yesterday rallying key customers and employees, telling reporters that Compaq's restructuring is on schedule. That helps, considering most on Wall Street are waiting to see how this new reorganization is going to aid the suffering company. After sustaining disappointing sales, weak earnings, inventory problems and distribution woes for the past two quarters, Compaq announced it would restructure. The plan calls for cutting about 1,600 jobs in an effort to cut expenses by about $2 billion. Today's 10% surge is the best thing to come Compaq's way in months. The stock has been roundly punished by investors who lost faith in the beleaguered PC maker this spring. After the company blamed its weak first-quarter performance on industrywide demand problems -- only to watch as its rivals surged ahead -- the Street abandoned it in droves. The board of directors ousted CEO Eckhard Pfeiffer and other managers. Given that Compaq's stock has plummeted more than 52% since January, this uptick is good news indeed. But until the company delivers some proof that its restructuring efforts are working, this still seems a touch-and-go situation at best. Mang