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: Captain Jack who wrote (71753)	11/12/1999 3:47:00 PM
From: Loki	Read Replies (1) \| Respond to of 97611

Captain Jack...SSB analyst Richard Gardner... For two years CPQ has been on the SSB approved list with a target between $60-$65/shr. Then they dropped it. (exact same thing they did with MO...also 60-65 target) "Given the potential Y2K impact and supply constraints during the fourth quarter, as well as our assessment that Compaq's commercial PC division will continue to experience competitive pressures we are reducing our 4Q revenue estimate from $11.1 billion to $10.0 billion and our 4Q ESP estimate to $0.21 from $0.15." (Is it a mistake on the earnings? That's not a reduction) "We are also reducing our fiscal 2000 revenue and earn- ings estimates, based on our assessment that 1) the continued consolidation of the corporate PC market will cause increased competitive pressure and therefore make it difficult for Compaq to catch up to the cost leaders, and 2) the DEC and Tandem platforms are likely to experience continued pressure from formidable competitors like SUNW, HWP, and IBM. Although we have given Compaq full credit for its planned expense reductions during fiscal 2000, our cautious revenue outlook effec- tively lowers our fiscal 2000 EPS estimate from $1.14 to $1.00. We are reducing our price target from $25 to $20, but we believe that Y2K concerns, supply con- straints, and higher competitive pressures in the PC segment could ultimately push the stock into the mid-teens. We reiterate our Neutral rating." above from SSB Loki