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

To: George Elliott who wrote (76750)	1/26/2000 2:48:00 PM
From: Elwood P. Dowd	Respond to of 97611

*****THOMSON I-WATCH SYNOPSIS***** by: go_with_throttle_up 1/26/00 2:38 pm Msg: 135952 of 135952 CPQ -- Pers Computers -- Technology 26-Jan-00 10:56:12 After the close on Tuesday, Compaq Computer reported 4Q earnings of $0.16 per share, 3 cents ahead of the First Call consensus estimate. The reaction from the Street has been mixed with many analysts disappointed that CPQ's upside was achieved through a one-time gain. Additionally, while revenues came in ahead of expectations, CPQ's gross margins declined by a stronger-than-expected amount. As a result, the momentum money that helped CPQ run-up from $18 in early November to the low $30's earlier this week are bailing out of the stock. These investors were looking for clearer signs that CPQ's business is on track to achieve consistent ,across the board growth. These high-turnover aggressive growth/momentum type institutions focus exclusively on earnings growth and price momentum and the slightest hint at a slowdown will spark a major sell-off. These investors are notorious for bailing out of multi-million share positions in short time frames regardless of the effect on the stock's price. This is why, despite some interest from buyers on I-Watch, CPQ's stock price has plunged $1 3/4 to $29 1/4. However, the pre-trade I-Watch data has been helpful in calling a turnaround in the stock with institutional buying interest really piling up near $29. Watch for continued strong volume of Super Bids at this price to indicate that an intra-day floor may hold at this level. A drop off in pre-trade interest would open the door for further downside. Note: thomsoninvest.net rder=1&i=3