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

To: marquis103 who wrote (71675)	11/12/1999 7:57:00 AM
From: Elwood P. Dowd	Read Replies (1) \| Respond to of 97611

Russ... agreed. Kernan did try to encourage a positive comment out of Kumar, but no luck. Kumar absolutely slammed CPQ. El

To: marquis103 who wrote (71675)	11/12/1999 8:13:00 AM
From: rupert1	Read Replies (1) \| Respond to of 97611

Thanks for the report on Kumar. Any comment, even negative comment, is welcome if it is substantiated with fact and sound reasoning. I take what Kumar says with a pinch of salt. For the last two years, he has come out with extraordinary statements about COMPAQ. They were invariably based on his claim to have inside information or information from re-sellers. He became very bitter when in February this year, the big negative admission by CPQ's Earl Mason was given to CSFB, thereby eclipsing Kumar. While the generally negative information about COMPAQ he peddled in the first half of this year was in the right direction, it was never correct. Furthermore his recommendations on the share price continued to be wrong even as he pumped out the negative stuff. Even when he alone of all analysts predicted a huge loss in the 2Q he got the loss wrong by 25% and given that his prediction was based on inside information this was quite serious. Kumar was recommending CPQ as a buy when it was in the high $40's earlier this year: when it crashed he set the figure of $35 as the bottom: when it crashed further he picked on the mid-20's as the bottom; when it went through $20 a few weeks ago he then said there was no bottom. For much of the summer he has been silent and it appears that he has lost his source of inside information and this seems to have angered him. A couple of weeks ago he said that COMPAQ was returning to its roots as the manufacturer of commodity appliances and this remark suggests a radical lack of sympathy with COMPAQ's diversification and emphasis on high-end stuff. If you met Kumar on a bus and he wasn't hired by a brokerage house with access to the media, would you pay any attention to what he has to say about COMPAQ? I am suspicious of any analyst who cultivates a relationship with The Street.com and orchestrates his recommendations in the media like Kumar does. Finally, he recommends COMPAQ as a buy.