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

To: Elwood P. Dowd who wrote (87492)	12/6/2000 11:59:59 AM
From: John Koligman	Respond to of 97611

El, No impact at all this quarter. It's just something to watch going forward, cause if Dell does make it up there, it will not be a positive for CPQ as far as I can see. Regards, John

To: Elwood P. Dowd who wrote (87492)	12/6/2000 12:00:23 PM
From: Night Writer	Read Replies (1) \| Respond to of 97611

CSFB downgrades Apple, Gateway and Compaq NEW YORK, Dec 6 (Reuters) - Credit Suisse First Boston on Wednesday said it had lowered its ratings on computer makers Apple <AAPL.O>, Gateway <GTW.N> and Compaq <CPQ.N>, on the heels of Apple's negative earnings news last night and overall weakening industry fundamentals. Research analyst Kevin McCarthy downgraded Apple Computer from Buy to Hold and reduced his 12-month price target to $15. Apple said on Tuesday it would post its first quarterly loss since 1997 as sales fell short of forecasts. "Our Q1 revenue reduction last week from $1.6 billion to $1.5 billion in anticipation of a shortfall clearly underestimated industry problems; our new estimate for the quarter is $1 billion," the CSFB research note said. It added that while Apple will try to revive its product lines with new platforms early next year, weakening industry fundamentals, especially in the consumer segment, will prevent multiple expansion. McCarthy lowered his investment rating on Gateway from Buy to Hold with a 12 month price target of $25. "We are downgrading Gateway ... in the wake of Apple's pre-announcement last night," his research note said. "Gateway is particularly exposed, along with Apple, to systemic weakness in the worldwide consumer market, which may not abate until vendors truly transform themselves into appliance companies." McCarthy downgraded Compaq from Strong Buy to Hold, with a 12 month price target of $30. "Although Compaq stated at the CSFB conference last week that Q4 was tracking on plan, we no longer believe the company can escape the scope of industry deterioration evidenced by Apple's and Gateway's pre-announcements," he said. McCarthy said Compaq is the best-positioned PC vendor but that 20 percent of its revenues come from the consumer PC business, which is the focus of industry deterioration. "Our reduction in Q4 numbers is entirely allocated to the consumer business," his note added. ((--David Howard Sinkman - New York Newsdesk 212-859-1700)) REUTERS * end of story *

To: Elwood P. Dowd who wrote (87492)	12/6/2000 12:01:04 PM
From: tonyt	Respond to of 97611

Apple, Compaq sour computer stocks By Janet Haney, CBS.MarketWatch.com Last Update: 11:15 AM ET Dec 6, 2000 NEW YORK (CBS.MW) -- An earnings warning from Apple Computer along with rating downgrades for both Apple and Compaq caused other computer related stocks to sour Wednesday. Apple shares went rancid in recent trading, dropping $2.25, or 13 percent, to $14.69, marking a new 52-week low. Late Tuesday the company said first-quarter revenue would fall "substantially" below already lowered projections amid an industry-wide slowdown in personal-computer sales. See full story. The Cupertino, Calif., company also projected that it will report its first quarterly loss in three years. Apple (AAPL: news, msgs) said considerably slower sales in October and November will result in revenue of $1 billion, which is below Wall Street's consensus projection. Apple's warning comes amid a slew of other cautious outlooks from both PC and semiconductor companies alike. In late October, Gateway (GTW: news, msgs) warned of slower PC sales in the fourth quarter, while chipmakers Altera (ALTR: news, msgs) and LSI Logic (LSI: news, msgs) followed. Rating downgrades for Apple and Compaq Computer (CPQ: news, msgs) didn't help the sector, either. Credit Suisse First Boston lowered its outlook on Apple, Compaq and Gateway to a "hold" from the previous "buy" rating. The investment firm said it no longer believes Compaq can escape the industry deterioration in light of Apple and Gateway's warnings. Compaq shares lost $3.39 to $21. Additionally, Hewlett-Packard (HWP: news, msgs) will hold its analyst meeting Wednesday in Palo Alto, Calif. Shares of the stock fell $3.31 to $31.69.