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

To: Elwood P. Dowd who wrote (92133)	7/11/2001 10:48:19 AM
From: MeDroogies	Respond to of 97611

I think if MC had warned, I would've completely lost faith in him. As it is, this can be construed as "a warning" of sorts (they did fall short in revs and slightly short on earnings). However, it wasn't what I expected. I am CAUTIOUSLY optimistic. After a night's reflection, I think MC's moves are well designed, warranted, and will help CPQ emerge as a major winner from the current environment. This, of course, is optimism that will be under review in the short term. I realize changes like this take time and aren't evident in 3 months time. However, I think in 3 months we should have a better idea of whether the 180 day time frame is really coming to fruition. Good luck to all.

To: Elwood P. Dowd who wrote (92133)	7/11/2001 10:51:02 AM
From: Steven N	Respond to of 97611

Q's Capellas fires 4,000 more Memo Leak: Europe's fault By Mike Magee, 11/07/01 02:49:18 BST 4,000 MORE JOBS will go at Compaq, the firm announced after the stock market closed Tuesday. And at the same time, the firm warned that its Q2 revenues would drop by 17 per cent, with Europe being blamed for the latest round of cuts. The company will take a massive $490 million charge during the period. We have the text of the Capellas Compaq internal memo to his long suffering staff - below. The memo asks the staff who don't get fired to stiffen their sinews but this "attrition" stuff is truly mindnumbing - from the outside we can only imagine the effect on morale these repeated announcements are having on the staff. Terry Shannon, editor and publisher of inside newsletter Shannon knows Compaq, said: "Faced with deteriorating sales, intense competition, an imminent make-or-break strategic transformation, a nontrivial restructuring agenda and a potential business unit consolidation, Compaq has got plenty of chainsaws to juggle. "Toss in the firm’s decision to fundamentally change its enterprise server strategy while beefing up its services resources, and it’s obvious that this will be a long, hot summer indeed for Compaq." A careful look at the Capellas memo seems to suggest that $185 million of Compaq's Q2 restructuring (see below), is due to its decision to shunt the Alpha microprocessor out of the picture. µ From: Chairman & CEO - Michael D. Capellas Sent: Tuesday, July 10, 2001 4:19 PM Subject: Strategic Update To: Compaq Global Team theinquirer.net