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

To: rupert1 who wrote (69987)	10/25/1999 10:07:00 PM
From: Elwood P. Dowd	Read Replies (1) \| Respond to of 97611

>>>>The proposed write-off of between $700-900 gives COMPAQ lots of scope to "cook the books" in the nicest sense of the word. I have seen a suggestion that the operating profit and the write-offs will be counter-balanced, and the net effect will be an EPS manipulated to be right on .05 cents or no more than a couple over.<<< Corectomundo!!! El

To: rupert1 who wrote (69987)	10/25/1999 10:22:00 PM
From: E_K_S	Respond to of 97611

Hi Victor - I believe the Street will want to see three quarters of growing revenues and positive earnings before any premium will be factored into the share price. IMO, the Street is going to be skeptical weather this is a one time write down or a reoccurring event. I can not count how many restructuring "one time" write offs Eastman Kodak has done in the last five years. I sure hope that CPQ's management has everything under control. It has been my experience that companies stumble more than once when trying to re-engineer themselves. I will be selling March $25 covered calls on 1/3 of my shares. It will be critical (and very difficult) to measure the effectiveness of our management's moves. I guess this is where you must give management the benefit of doubt until you can prove otherwise. EKS