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

To: Elwood P. Dowd who wrote (87848)	12/13/2000 1:36:44 PM
From: Kenya AA	Respond to of 97611

Compaq (CPQ) 19.07 -1.70: -- Update -- ING Barings downgrades to BUY from STRONG BUY rating and price target of $30. Says that the company has been successful in regaining end-market momentum, returning PCs to profitability and has extended its core Intel server dominance; however despite significant strides company is back where they started; firm expects aggressive pricing through the period of softer spending which will likely cloud the outlook for PC stocks and limit talk of upside for another few months, but notes that CPQ still remains one of the firm's favorite stocks.

To: Elwood P. Dowd who wrote (87848)	12/13/2000 2:03:46 PM
From: Andreas	Read Replies (4) \| Respond to of 97611

Elwood; Despite the defense of MC by some on this thread the fact still remains that one week prior to the warning MC said (i) there were no red flags, (ii) didn't see an decrease in IT spending, (iii) IT was the last area to be cut in any event, (iv) guidance does not need to be changed. I may not be Einstein but I wasn't born yesterday (although I wish I had been) and I submit that absolutely nothing can happen within the time frame of a single week to suddenly generate red flags to the tune of $1 billion sales shortfall. BTW, neither my criticism of MC nor the defenses of MC on this thread are particularly relevant. What matters is MC's credibility with WS. At this point it is seriously damaged for obvious reasons.

To: Elwood P. Dowd who wrote (87848)	12/13/2000 6:06:13 PM
From: rudedog	Read Replies (1) \| Respond to of 97611

El - I sought out one of my old CPQ buddies who recently retired (last year). He said that half of the revenue for the quarter comes in December, and the server revenue is usually late in the month, so that things could look fine through November and still go south. His take was a lot like yours - given that everything in the sector is going to hell in a handbasket, it would have been amazing if CPQ had managed to maintain previous goals. Of course he's just speculating, like the rest of us.