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

To: Piotr Koziol who wrote (83788)	7/26/2000 3:38:16 PM
From: Night Writer	Read Replies (1) \| Respond to of 97611

The only way you do that is to collect the cash before paying for the labor and parts. BTO on a slow basis. NW

To: Piotr Koziol who wrote (83788)	7/26/2000 3:41:29 PM
From: Night Writer	Read Replies (1) \| Respond to of 97611

HOT STOCKS HIGHLIGHTS -- Wednesday July 26 NEW YORK, July 26 (Reuters) - The following are among U.S. companies with significant stock price movements on Wednesday: LSI LOGIC <LSI.N>, off 16-11/16, last 32-1/8. * LSI Logic was one of the New York Stock Exchange's biggest losers in percentage terms. The Milpitas, Calif.-based semiconductor maker reported second-quarter profits on Tuesday that were in line with analysts' estimates but lacked the positive surprise investors have come to expect from computer chip companies. Its shares tumbled more than 6 points in after-hours trading last night. On Wednesday, Prudential Securities cut LSI's investment rating to accumulate from strong buy and lowered earnings estimates, citing "execution-related revenue shortfalls." XEROX CORP <XRX.N>, off 3-3/16, last 15. The No. 1 photocopier maker's stock fell to a five-year low on the NYSE after the company posted second-quarter earnings in line with Wall Street forecasts but issued the latest in a series of profit warnings. The Stamford, Conn.-based company said it expects second-half earnings to be down from a year earlier. KIMBERLY CLARK <KMB.N>, up 3-1/16, last 60-1/8. * The Dallas-based maker of personal care products such as Huggies diapers and Kleenex tissues was boosted by second-quarter profits that rose a better-than-expected 14.9 percent on increased sales and operating margins. NOVA CORP <NIS.N>, off 7-9/16, last 11-11/16. * Nova Corp. shares fell on the NYSE after it issued a warning on second-quarter revenues. The Atlanta-based payment processor revised its second-quarter revenue projection to $406 million, below analysts' estimates, citing lower average merchant volume. The company is expected to report earnings on August 9. VIGNETTE CORP <VIGN.O>, off 4, last 39-5/8. * Vignette Corp. shares fell on the Nasdaq although the company posted better-than-expected second quarter revenues on Tuesday. ING Barings said it downgraded the Austin-based e-commerce software maker to buy from strong buy, citing dependence on large deals, increasing competition, and a possible slowdown in off-balance-sheet licensing. COMPAQ COMPUTER CORP <CPQ.N>, up 1-7/16, last 28-7/8. * Shares of the world's top personal computer maker rose on the NYSE after the company reported earnings in line with Wall Street expectations on Tuesday. A slew of Wall Street firms responded with bullish comments after examining the results. Donaldson Lufkin & Jenrette, PaineWebber, Bear Stearns, and Chase H&Q raised their investment ratings on Houston-based Compaq. EBAY INC <EBAY.O>, off 3-1/4, last 53. * Although the online auctioneer said after the close on Tuesday that second-quarter earnings increased sharply, beating Wall Street estimates, its shares fell on the Nasdaq, along with the tech sector as a whole. According to analyst Anthony Noto of Goldman Sachs, Internet stocks are typically driven by "momentum investors," who may have anticipated a bigger earnings blowout from eBay. He said investors should consider eBay's growth and cash flow, which are strong. Goldman Sachs raised its 2000 earnings estimates for eBay, as did CS First Boston. ((--Jean Scheidnes, New York Equities Newsdesk (212) 859-1700)) REUTERS * end of story *

To: Piotr Koziol who wrote (83788)	7/26/2000 4:14:57 PM
From: marquis103	Read Replies (1) \| Respond to of 97611

"Isn't this a bit unreal ???" Sure seems unreal to me. As Night Writer stated, due to a slow BTO system, maybe their accounting practices somehow let them account for the cash conversion before they actually use the money. Whatever's involved here, I think it shows that the Motley Fool writer was really reaching to find a negative in the earnings release. I haven't seen any of the other brokers mention Compaq's cash conversion cycle so I'm not going to worry about it. I just hope the general market starts to heal itself so this stock can finally move into the 30's. Russ EDIT: Just saw rudedog's explanation. Good enough for me.