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

To: Captain Jack who wrote (71770)	11/12/1999 6:07:00 PM
From: Elwood P. Dowd	Read Replies (2) \| Respond to of 97611

Yes, but expectations for DELL are so much greater. The bar has been set low enough for the already beaten down CPQ that they could surprise on the upside in Q4. As a matter of fact, I'm calling for an upside earnings surprise from CPQ in Q4. El

To: Captain Jack who wrote (71770)	11/12/1999 7:09:00 PM
From: rupert1	Read Replies (1) \| Respond to of 97611

Captain: You said that Dell did not do so badly but got spanked anyway. For a couple pf years, DELL has handily beaten earnings estimates and talked up its future rate of growth, while mocking CPQ, IBM, HWP, GTW if they faltered and offered excuses. That's why the market has awarded DELL a p/e of 50-60. Yesterday, it was DELL who barely made the earnings expectations which were reduced a couple of weeks ago because DELL made excuses about the rising costs of components. What the market was saying today - and will say with more emphasis in the future - is that DELL's p/e must be brought down towards the norm for the sector if DELL cannot be relied upon to produce substantially higher growth in earnings than the other companies in its sector.