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

To: Elwood P. Dowd who wrote (90338)	3/16/2001 6:33:12 PM
From: Jimbo Cobb	Respond to of 97611

Welcome back Wood !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Jimbo.

To: Elwood P. Dowd who wrote (90338)	3/16/2001 6:41:40 PM
From: Andreas	Read Replies (1) \| Respond to of 97611

Welcome back Elwood; Hope you enjoyed your time off and were able to not allow this crappy market to become a distraction. Here is a question for everyone - it appears that dell is able to compete with cpq in virtually every market segment with significant efficiency and particularly cheaper pricing. This begs the question, what benefit did the dec acquistion bring to the table? It appears to me, that virtually nothing was gained by buying DEC. Indeed, what good was a 9 billion dollar purchase when dell can compete in high end servers, mid priced servers, and everywhere else without spending 9 billion? While I don't pretend to understand the DEC purchase I am certainly wondering if it was a total waste of $9 billion.

To: Elwood P. Dowd who wrote (90338)	3/17/2001 8:01:40 AM
From: Steven N	Respond to of 97611

Story Filed: Saturday, March 17, 2001 5:38 AM EST SAN FRANCISCO, Mar 16, 2001 /PRNewswire via COMTEX/ -- The following is being issued by Robertson Stephens: library.northernlight.com "Yesterday after the close, Compaq revised its 1Q01 revenue and EPS guidance to $9.0-$9.2 billion and $0.12-$0.14 due to weakness in the U.S. consumer and commercial markets, an aggressive pricing environment, and continued lockdown in IT budgets," said Rothdeutsch. "Compaq announced a restructuring charge of $125-$150 million and plans to layoff 5000 employees, or 7% of its work force. The company also plans to recognize a $120 million one-time gain from the sale of the company's investment in the Road Runner joint venture. Although we see few reasons for optimism over the next couple of quarters, we are maintaining our BUY rating on CPQ given its strong position in servers and storage that should serve the company well once spending resumes. Given the challenging near-term environment, we are lowering our 12-month price target from $29 to $24, or 22x our new F02 EPS estimate of $1.10, a level that we feel is reasonable given where the stock has traded on a historical P/E basis looking out over the next twelve months." gab