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

To: Y. Samuel Arai who wrote (74230)	12/21/1999 7:16:00 AM
From: rupert1	Respond to of 97611

Y.Samuel: Thanks for the posting. Is that article written only on the basis of past public statements of COMPAQ executives (and analysts) or is it based on statements made this week? The reference to a meeting with analysts confuses me. I was previously familiar with all the statements, except the Kumar comment and the claim that only 10% of cost-cutting has been achieved. In an interview, Compaq's Michael D. Capellas wouldn't confirm any talks. But six months after* taking the job of chief executive officer, he concedes....* "......he pledges higher visibility, including the company's first analysts' meeting* since former CEO Eckhard Pfeiffer was sacked in April.* In my opinion, if they do acquire Inacom's facilities, people will be nervous given COMPAQ's continued failure to cut out the excessive costs still in place after the DEC acquisition, but on the whole, I think the market would applaud the plan if it was sensibly priced, easily digested and immediately accretive. The statement that they have achieved only 10% of the target for cost-cutting, if it is a current statetment, is very worrying for 4Q results. On the other hand, if the interview reflects a recent meeting with analysts the overall tone is too positive to be consistent with an earnings warning.