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

To: Captain Jack who wrote (80240)	3/25/2000 10:02:00 AM
From: MikeyT	Read Replies (1) \| Respond to of 97611

One of the better post on Yahoo...BTW, Captain...did it really took IBM 4 years to turnaround...I wasn't counting<G>. Keep it in perspective by: jcdiedforme 3/25/00 3:41 am Msg: 149138 of 149149 CPQ is down 1 1/2 for the week, up 1 1/2 for the past 2 weeks and up 1 1/2 since the begining of the year. Just not a big deal. CPQ should not respond to every rumor. Rumors are merely a method to bait companies for info in a competitive environment. MC must be keeping fund managers informed account the huge money flow into the company in the past 8 weeks. WS hates surprises. Recall GTW and Dell both reported shortfalls in the past qtr while CPQ did not. Expectations are so low for this company (10-12% earnings growth) that it can be achieved through simple cost cutting. Incidentally, the past qtr showed favorable trends in margins and cutting costs. Comparisons to last year are a snap. CPQ is well positioned in a key industry. The explosion in the chip business is a precursor to a great year in the computer business. This year will be no different. The computer business is not dead. How many of you are posting from a pc? Speaking from experience, turnarounds are a challenge and take at least 18 months. That's why most investors hate to stick around account 18 months can seem like an eternity. Being debt free and flush with cash is key. Pull a chart on AAPL. Those boys were in the dumps for 4 years. At the end of the day those that stuck around werent dissapointed. (ie.from 20 to 140) MU was another one. Took 24 months to turn this one from being the ugly duckling to a prince. IBM took 4 years. MOT was flat lined from 95 - 98. When Larry was out sailing even high flying ORCL had an 18 month fall from grace in 98. LU is kind of going through the same thing right now. Once loved by WS they are always willing to allow you to re-enter the fold. (Assuming no accounting irreg's) CPQ is not for momentum traders. It is for those that believe that technology is the future and that CPQ is in the process of righting the canoe. Eventually it will catch the current and WS will be paddling like mad. Friends of friends working for CPQ have mentioned the huge change in atmosphere and enthusiasm within the company in HT. True turnarounds are first evidenced at the lowest levels within an organization. The littel guys are always the biggest sceptics. If they believe it must be real. Frankly, a dissapointing qtr, if there is one, just isn't a big deal. Recent history shows earnings warnings are buying opportunities. They help to get some of the hot money out of a stock and keep expectations low. In the 90 day window when Rosen and co stepped in to clean house they set the stage for MC to succeed. They took decisive action and made few mistakes. Seems most on these boards love the CMGI move. CPQ's equity gains will alllow them to take profits anytime they need to offset a one time loss. This is a company well in charge of their destiny. Sit back and enjoy the show. Don't leave at the intermission. Once the intermission ends you will be paying a whole lot more to get back in.