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: Elwood P. Dowd who wrote (77821)	2/9/2000 3:44:00 PM
From: MeDroogies	Respond to of 97611

Interestingly, I think CPQ will come pretty close to .17 without selling assets. I think to make it they WILL have to....but I'm fairly certain that cost-cutting will allow them to increase the reliability of their earnings estimate. I realize that 4th quarter is the best quarter for sales, but I remember when AAPL was coming off their 4th quarter estimates, the same comments were being made....yet AAPL hit the # with a relatively weak quarter. People complained that revenues were down...channel stuffing...etc. However, the cost cutting is what got them to where they were. After that, the savings multiplied, and they got their sales in gear. I believe the same result will be seen here.

To: Elwood P. Dowd who wrote (77821)	2/9/2000 4:07:00 PM
From: JDN	Read Replies (1) \| Respond to of 97611

Dear El: YOU'VE SOLVED THE PROBLEM. Make Jeeves the CFO. Hell, make him the CEO, things cant get much worse can they? JDN

To: Elwood P. Dowd who wrote (77821)	2/9/2000 8:47:00 PM
From: Salah Mohamed	Read Replies (1) \| Respond to of 97611

El ... About Q1 >>>Did he ever say he'd make the earnings estimates WITHOUT the sale of assets?<<< Yes, but he didn't address Q1, except to say that revenues will be lower than Q4-99 due to seasonality. Specifically, he said he is comfortable with the EPS estimates for FY00 of $1.06 to $1.08 excluding gains from assets sales and special charges. In both Q1-00 and Q2=00, they will have a charge of $60M to $65M for NT on alpha which will be included in Cost Of Goods. If they have gains from asset sales of about the same amount, then the net effect on EPS would be nil. For Q1, analysts estimates are: $9.6B revenue compaq.com and EPS of $.16. IMO, they should meet these numbers easily