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

To: Captain Jack who wrote (90494)	3/26/2001 9:08:05 AM
From: Elwood P. Dowd	Respond to of 97611

Compaq to Bring Simplicity of Pen and Paper to New Generation of PCs Compaq to Be a Lead Partner With Microsoft in Developing New Tablet PC For Windows XP Software HOUSTON, March 26 /PRNewswire/ -- Compaq Computer Corporation (NYSE: CPQ - news), today announced plans to develop a tablet-based PC based on Microsoft Corporation's (Nasdaq: MSFT - news) Windows XP software platform. Comparable in size to a standard sheet of paper and expected to weigh less than current notebook designs, the new Compaq Tablet PC will be a full-function Windows based PC that combines the productivity and access that users expect in a notebook with the simplicity of a pen interface. ``The Tablet PC gives you the all the power of a full-function PC to create, store and access information, but adds the convenience of a notepad,'' said Jeri Callaway, Vice President of Commercial PC Products, Compaq Access Business Group. ``You will now be able to make changes and add notes to existing documents while on the go using a new intuitive interface, and then wirelessly transmit those documents to those who need the updated materials.'' Mobile users will be able to access and input their information much like reading and writing on a piece of paper. Because you can write on the screen, it's optimized for tasks that are very common in business computing -- like taking notes at a meeting, making changes to an existing document or presentation, or easily reading documents. In addition to the business computer user who spends some part of their day in meetings or away from their desks, the Compaq Tablet PC is also designed for users in industries such as the healthcare, sales, and educational fields where simple, pen-based interfaces can be used to enter and access information. Compaq will be a strategic partner in working with Microsoft to developing the Tablet PC for Windows XP. The two companies have entered into an agreement to work together to define the platform, and evaluate customer needs. Microsoft will also use Compaq Tablet PCs to test and develop the Tablet PC for the Windows XP operating system. ``Compaq is known worldwide as a leader in delivering innovative technology and solutions to the marketplace,'' said Jeff Raikes, group vice president of productivity and business services at Microsoft. ``We are pleased to be have Compaq as a lead partner on this project as we work together to evolve and extend the PC platform in an exciting new direction.'' Compaq expects to ship its Tablet PC when the Windows XP version for Tablet PC is released in 2002. Pricing is not yet available. Company Background

To: Captain Jack who wrote (90494)	3/27/2001 12:32:02 AM
From: Rossignol	Read Replies (1) \| Respond to of 97611

14 - 15 is a real possibility to me. Out here in the Valley all I hear about is no spending, no spending. As big an employer as they are, its already had quite an effect on the secondary economies eg services, restaurants, etc. We aren't yet thru with the earnings shortfalls even with the latest warnings IMHO. The only positive is that I think its precisely the time to buy in if you have any cash left.

To: Captain Jack who wrote (90494)	3/27/2001 9:34:10 AM
From: Elwood P. Dowd	Read Replies (2) \| Respond to of 97611

Merrill analyst Christine A. Callies by: skeptically 03/27/01 09:20 am EST Msg: 226137 of 226141 26 March 2001 Christine A. Callies Chief U.S. Investment Strategist Puru Sareen US Investment Strategy The Dust Begins to Settle—Recovery Prospects Still Encouraging Investment Highlights: • We doubt that the Fed has “blown it” with respect to equities. Last week’s temper tantrum in the equity markets illustrates that almost nothing that the FOMC did would have pleased investors. • The majority of our macro and micro barometers indicate that the prospects for equities continue to improve and the potential for broad leadership is expanding not contracting. • Although most groups have experienced some price erosion over the last several weeks, the growth-cyclical, soft landing leadership still appears to be intact. Further Fed rate cuts should reinforce this leadership shift. • The dreaded inventory correction in U.S. manufacturing appears to be proceeding swiftly, led by autos. This supports our view that margin pressures from this source should be short-lived. • Other negatives that might have interfered with the positive effects of Fed easing also appear to be dissipating (energy costs, consumer debt). • We, too, remain concerned about the level of household leverage, but detect little evidence of a major consumer retrenchment in this area. • The behavior of the long end of the Treasury curve over the last several weeks has been decidedly sluggish given the magnitude and speed of the equity market correction, and mortgage-related portfolio shifts. Risk-free assets appear to be overvalued. >Soft landing leadership survives The maintenance of outperformance during an interim correction can confirm new group leadership provided that valuations and the business/monetary cycle also support a sustainable move: consumer cyclicals (retailers—Best Buy (BBY, $38.80, C-1-1-9), BJs Wholesale (BJ, $44.08, C-1- 1-9), Dollar General (DG, $18.98, B-1-1-7), Ethan Allen (ETH, $32.20, B-1-1-7), Federated Dept. Stores (FD, $43.13, C-2-1-9)), energy—Amerada Hess (AHC, $74.78, B-1-1-7), BJ Services (BJS, $75.00, C-1-1-9), Weatherford Intl. (WFT, $53.28, C-1-1-9), and utilities—Exelon (EXC, $59.79, C-1-1-7) have managed to defend a significant portion of their gains from late 2000. Unless the fundamentals become uncompetitive (unlikely), these areas should share a leadership role for much of 2001. Resurrected leaders typically emerge on a piecemeal basis (technology—semis, cap equip, PCs, especially Compaq Computer (CPQ, $20.50, B-2-2-7) and Texas Instruments (TXN, $38.81, C-2-1-7). Old leaders that perform poorly (health care) are at risk of becoming persistent laggards—especially if Fed easing is aimed at reigniting profit growth. As profit growth begins to turn, investors tend to pursue areas with greater sensitivity to the business cycle, not the areas with the least. Safe havens also can become shaky havens if the relative multiples are extended, as appears to be the case for the health care sector (especially diversified pharmaceuticals, major pharmaceuticals).