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

To: rupert1 who wrote (70428)	10/27/1999 10:59:00 PM
From: E_K_S	Respond to of 97611

Hi Victor - If CPQ earns $1.00-$1.06 next year, how can an investor justify any price above $25.00. From the recent analyst announcements, I have seen no higher estimates for FY2000 earnings. A PE of 25 can be used if one thinks future revenue growth will grow at 25% or higher. This is a rule of thumb I use to gauge a fundamental "value" investment as long as the balance sheet is solid. Do you value investments the same way in Europe? What's your view? Although I think the future prospects for CPQ will be positive, I just do not see CPQ's PE expanding much unless significant growth is obtained in the new emerging Internet markets. I think a lot of the analysts are micro-managing their future forecasts that may keep a lid on CPQ's price until significant changes occur. EKS

To: rupert1 who wrote (70428)	10/27/1999 11:04:00 PM
From: E_K_S	Respond to of 97611

Compaq Computer (CPQ)(Reuters 07:50 PM ET 10/26/99) (http://www.infobeat.com/stories/cgi/story.cgi?id=2561801463-0ee) COMPAQ's revenues in the 4Q, typically its strongest of the year, will grow compared with the 3Q, though it faces "tough" comparisons with the year-ago 4Q, its CEO said. Michael Capellas, recently hired as president and CEO, also warned analysts during a conference call that followed Compaq's 3Q report that corporate spending on its biggest computer systems could slow late this year. Capellas stopped short of setting specific revenue or earnings targets for the 4Q, citing the difficulty of predicting year-end results in the fast-changing industry, combined with dislocations caused by Y2K fears.

To: rupert1 who wrote (70428)	10/27/1999 11:06:00 PM
From: E_K_S	Respond to of 97611

Compaq Computer (CPQ)(Reuters 01:38 PM ET 10/27/99) (http://www.infobeat.com/stories/cgi/story.cgi?id=2561811781-98a) BancBoston Robertson Stephens and Warburg Dillon Read cut their earnings estimates for COMPAQ COMPUTER after the giant PC maker reported 3Q results. BancBoston's Dan Niles cut his 4Q earnings estimate to $0.13 a share from $0.15, and cut his fiscal 2000 estimate to $0.95 from $1.10. Warburg's Charlie Wolf lowered his 2000 estimate to $1.15 a share from $1.30, "chiefly because of slower revenue growth," he said in note to clients.

To: rupert1 who wrote (70428)	10/27/1999 11:09:00 PM
From: E_K_S	Respond to of 97611

Compaq Computer (CPQ)(Reuters 01:12 PM ET 10/27/99) (http://www.infobeat.com/stories/cgi/story.cgi?id=2561811511-674) ABN AMRO said it raised COMPAQ COMPUTER's 4Q earnings per share estimate a day after the world's largest computer maker posted higher 3Q earnings. In a research note, ABN AMRO analyst Jonathan Ross said he is raising his 4Q EPS forecast to $0.17 from $0.13, following a "generally good 3Q 99 performance." Ross said he is also reiterating his 12-month price target of $35.

To: rupert1 who wrote (70428)	10/27/1999 11:13:00 PM
From: E_K_S	Read Replies (3) \| Respond to of 97611

Compaq Computer (CPQ)(Reuters 11:24 AM ET 10/27/99) Bear Stearns said it lowered its forecast for 1999 earnings on COMPAQ COMPUTER.-- Analyst Andrew Neff, citing short-term pressure from component shortages, cut his 1999 estimate to $0.23 a share from $0.30 <<<<<< <<RUDEDOG>> It appears this analysts differs from your view on the component shortage issue. <<<<< -- Neff said Compaq "is taking the right steps for a successful turnaround" but is looking to hear more about future strategy from Compaq, which did not give much guidance about fourth-quarter profits