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

To: Elwood P. Dowd who wrote (84600)	9/1/2000 3:29:31 PM
From: PCSS	Respond to of 97611

Caught this on the CPQInvestors thread: Compaq Outmaneuvers Competition by Elyssa Jaffe ...... 10:14AM 8/3100 GMT --------------------------------------------------------- Compaq Computer [CPQ: NYSE], the world's leading maker of personal computers, took the number one spot from in PC sales from Hewlett-Packard [HWP: NYSE] in July, according to July sales figures from market researcher PC Data. IDEAglobal.com believes the stock will trade higher in the next two to three months as they demonstrate the attainment of their 2000 goals. Our target on the stock is $40. Compaq's retail resurgence came after the company slashed prices to regain market share at the expense of profits. Compaq continued to lower their average selling prices in order to stimulate sales. Compaq had a 40.9% market share in PCs sold in retail stores, compared with 32.9% for Hewlett Packard. A month earlier, Hewlett-Packard had nearly 40.0%, compared with Compaq's 30.6%. Due to strong support, the company expects stronger second-half results, and thus recently lifted its growth forecasts for 2000. Compaq announced that it is targeting a doubling, or perhaps even a tripling of its revenue growth rate in 2000, the most optimistic projection the company has made in several years. This pronouncement follows two years of lackluster product growth, management turmoil and disappointing financial performance. In fact, Compaq’s CEO recently indicated that he is comfortable the company could achieve revenue growth of 10% to 12% this year, with an outside target of 15%, which would be double or triple 1999's 5% revenue growth rate. This growth rate would put Compaq well ahead of the expected growth signaled by rivals IBM or Hewlett-Packard. Key to Compaq’s growth is its ability to continue its tough cost-cutting program. The plan calls for the company to reduce 4,000 jobs in the first half of 2000 to fulfill a 7,000-employee reduction program already underway. Compaq is expected to earn $1.07 for the year ending December 2000. Trading at $33-1/4, Compaq is currently selling at 31.3X its forward earnings projection. By comparison, the computer industry is selling for 150% more than Compaq Michael

To: Elwood P. Dowd who wrote (84600)	9/1/2000 6:21:30 PM
From: Night Writer	Read Replies (3) \| Respond to of 97611

Amateur TA time. No holds barred TA reading. Position trading TA based on the daily chart. Today the CPQ 4 DMA dropped slightly below the 9 DMA, and the MACD line is under the MACD signal line. Stochastics continues to remain above the 50 level. Due to the light volume, strong Stochastics, and the fact that this is a Friday before a three day holiday weekend I would not act on this sell signal. (Also because of the long term TA covered later.) The charts do indicate the possible start of some basing if CPQ does not start moving up next week. Without a move up CPQ could become a sell for short term position traders. Short term position traders would look to re-enter CPQ when CPQ shows signs of a break out from this possible new base. CPQ is no where close to giving a TA short selling signal. The 4 DMA would have to fall below the 9 DMA on large volume to start a down trend and generate a short signal. Long term TA based on the weekly chart. For long term investors Compaq's TA is excellent. It's 4 WMA (Week Moving Average) is well above it's 9 WMA. Stochastics and MACD are both very strong. The long term TA chart has been and remains strong since the July 28 buy signal. For ultra conservative long term investors. The CPQ monthly chart just gave a buy signal. This long term buy signal should generate some buying next week. This buying should give a boost to the daily chart and prevent a strong sell signal for position traders. This is another reason smart position traders will not exit early next week. Overall TA looks solid for the long term investor. Next week will be key for position traders. Should CPQ start basing position traders will start taking some profits. NW Compaq Daily Moving Average Price date Closing Price 18 day 9 day 4 day 8/2/00 $28.0000 $27.66 $28.16 $28.11 8/3/00 $28.8750 $27.82 $28.29 $28.33 8/4/00 $29.0000 $28.01 $28.52 $28.58 8/7/00 $29.9375 $28.19 $28.70 $28.95 8/8/00 $31.0000 $28.41 $28.90 $29.70 8/9/00 $31.3125 $28.61 $29.17 $30.31 8/10/00 $31.6250 $28.83 $29.58 $30.97 8/11/00 $31.6250 $29.01 $29.98 $31.39 8/14/00 $32.1250 $29.27 $30.39 $31.67 8/15/00 $31.9375 $29.49 $30.83 $31.83 8/16/00 $32.6250 $29.77 $31.24 $32.08 8/17/00 $32.8750 $30.10 $31.67 $32.39 8/18/00 $33.1250 $30.37 $32.03 $32.64 8/21/00 $33.1875 $30.59 $32.27 $32.95 8/22/00 $34.0000 $30.87 $32.57 $33.30 8/23/00 $33.6250 $31.18 $32.79 $33.48 8/24/00 $33.7500 $31.50 $33.03 $33.64 8/25/00 $33.8750 $31.81 $33.22 $33.81 8/28/00 $34.6250 $32.17 $33.52 $33.97 8/29/00 $34.0625 $32.46 $33.68 $34.08 8/30/00 $33.2500 $32.70 $33.72 $33.95 8/31/00 $34.0625 $32.93 $33.83 $34.00 9/1/00 $33.8125 $33.08 $33.90 $33.80