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

To: j g cordes who wrote (90325)	3/16/2001 3:03:11 PM
From: John Koligman	Respond to of 97611

Hi JG, I guess thats why I became a trader on Compaq around the 1998 timeframe... Flexibility is key, gotta roll with what you are given. So, I take the crumbs, a couple bucks here, couple there, in and out. As for the pie, sure it is growing, but the rate is slowing, and although these might not be 'normal' times, pricing is brutal... I do watch the charts as I have been doing swing trading as this bubble inflated over the past few years. I've seen all the comparisons to Japan, since the NAZ is heading toward a 65% down move, we have just about caught up to them in a year <ggg>. I just don't think this will play out as it has in Japan, they have some different demographic and banking system problems, and they have been rather slow in fixing the banking part. Guess we shall see. As for Compaq, hey, this is a jinxed stock in my book. It missed the tech boom over the past few years because of the EP/EM fiasco, and now that the new guy is trying to fix things, the economy blows up. Should be an interesting year. I also wonder how much used gear is going to be dumped, today Schwab of all firms said they are looking into 'dismantling' some of their systems and selling them.. Regards, John The company has not had significant layoffs since 1988. Analysts said the small steps Schwab has taken recently to weather the downturn in the stock market haven't been enough to offset the declines in trading activity. As a result, they said, more drastic actions may be needed. Schwab reported Thursday that daily average trading volume fell to 189,000, declining 15% from January levels and 32% from February 2000. The downward trend has continued in March to 179,000 trades a day, and as a result, Schwab will assess its spending plans, including staffing, facilities, technology, advertising and new projects. Schwab and other discount brokerage firms ramped up staffing and technology spending in the last year in the expectation of continued explosion in trading. The company spent about $238 million on capital expenditures in the fourth quarter, 34% of its total for the year and the most for any quarter, Mr. Keene said. Schwab's systems can handle activity greater than three times its prevailing volumes, which Mr. Dodds said is in excess of desired capacity. The company is considering dismantling some of its systems and selling the equipment, he said. "They hadn't been prepared for the run-up in volumes in 1998 or 1999, and they were going to be prepared, but they were overprepared," Mr. Keene said. Schwab officials said it was "premature" to discuss whether the review of their business would lead to cuts, and if so, how many. But Richard Strauss, a financial services analyst for Goldman Sachs in New York, estimates about the firm may need to reduce staff by about 850 workers. A spokesman for Schwab declined to comment on that estimate.