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

To: marquis103 who wrote (78185)	2/14/2000 9:23:00 PM
From: hlpinout	Read Replies (3) \| Respond to of 97611

The reason for today's beating? -- Compaq Asks Judge to Seal Public Record in Faulty Computer Case 2/14/00 3:25:00 PM Source: Bloomberg News Beaumont, Texas, Feb. 14 (Bloomberg) -- Compaq Computer Corp., the No. 1 personal computer maker, has asked a federal judge to gag the parties and their lawyers and close the public record in a class-action suit similar to one Toshiba Corp. recently settled for a record $2.1 billion. The suit, filed by a customer with the help of a group of plaintiffs' lawyers pursuing cases against several of the world's leading computer companies, alleges that Compaq knowingly sold machines with faulty floppy disk controllers that can lose or ruin data. Houston-based Compaq says in one motion that information the plaintiffs have requested must be kept secret from competitors. Another motion asks that the lawyers be barred from speaking to news organizations and the public about the suit. That request is accompanied by articles favorable to the plaintiffs that ran in a newspaper owned by their lead counsel, Beaumont lawyer Wayne Reaud. The headline on a story about the Compaq suit -- which did not include comments from the company, its lawyers or its court documents -- read 'David vs. Goliath.' 'This case will likely attract media attention,' Compaq's motion says. 'Plaintiffs' counsel have already made statements to the media that serve to prejudice Compaq's right to a fair trial in this forum.' Plaintiffs Object The plaintiffs object to barring lawyers from public comment, arguing that Compaq is merely trying to 'hide one simple fact from the public: The corporation has known that it has been using defective microcode in its products for over a decade.' If 'Compaq is blameless, truthful and interested in quality control of its product, then it should welcome the scrutiny of open court proceedings,' the objection says. The lawyers claim in the same court filing that they conducted tests on Compaq computers with company officials present that found the alleged defect in a 'large percentage' of the tested machines. In the one settled case, Toshiba agreed to repay customers with allegedly defective computers, while admitting no liability. The settlement, which includes what experts bill as a record $147.5 million in attorneys' fees, was approved last month by U.S. District Judge Thad Heartfield. Customers can receive cash for a new controller or free repairs. The case against Compaq is among several in federal court in Beaumont involving floppy disk controllers in personal computers. Plaintiffs represented by the same legal team are suing Packard Bell, NEC Corp., eMachines Inc. and Hewlett Packard Co. Compaq shares fell 1 to 24 5/8 today on the New York Stock Exchange.

To: marquis103 who wrote (78185)	2/15/2000 3:24:00 PM
From: Salah Mohamed	Read Replies (1) \| Respond to of 97611

Russ ... About Secretiveness >>>This veil of secretiveness that seems to have enveloped Compaq doesn't help the analysts make a judgement about purchasing the stock, nor give the shareholders a reason to keep the stock.<<< What secretiveness are you talking about?. They disclosed their plans and projections in a very open manner. The info they provided in the CC and the presentation to the analysts is more than any other company provides, and they posted it on their web site for us little investors to get this info first hand. compaq.com If they didn't impress the analysts and MM, as you imply, it is totally a subjective matter. Most of the comments I read about the meeting were positive with the exception of few negative ones. If you think that the $8 drop in the stock price was due to a bad presentation, maybe you would be able to explain why the stock went up about $6 - $7 points last summer after they announced Q2-99 will be one of the worst in their history, and suddenly reversed to set a new yearly low, and again reversed to go to $33. Obviously, short term price movements are very difficult to explain. In the final analysis, it is up to investors to review the available info and determine for themselves whether to buy, hold, sell, or short. Analysts and MM are correct about 50% of the time, IMO.