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

To: Elwood P. Dowd who wrote (92374)	7/28/2001 9:15:33 AM
From: PCSS	Respond to of 97611

G-S's Sat. morning research on CPQ: Compaq Computer Corp. [CPQ] $14.12 Compaq in line with preannouncement; revenues still under pressure in Q3; Market Outperform EPS (FY Dec): 2001E US$0.41, 2002E US$0.65 - Market Outperformer * Compaq reported revenues and EPS in line with the preannoucement of July 10 (not surprisingly); guidance called for revenues to be down 0.5% to 5% sequentially, with pronounced weakness in the consumer PC business, relatively slow enterprise hardware businesses, and continued currency pressures. Lowering estimates slightly, to $0.09 from $0.12 in Q3; to $0.41 from $0.47 for 2001, and $0.65 from $0.72 in 2002. Continue to rate Market Outperformer on low valuation and potential for operating leverage in a better environment next year, but we continue to expect difficult revenue and earnings trends over the next couple of quarters. * The weak demand environment, inventory reduction, currency issues, and pricing pressure continue to take their toll on the revenue stream. By our numbers, since the Q3 2000 peak in overall revenues consumer PC revenues have declined 51%, commercial PC's have declined 20%, and industry standard servers have declined 34%. Proprietary businesses peaked a quarter later, in Q4 of 2000; since then, the business critical server division is down 31%, and external storage is down 31%. Only services, now 23% of revenues due to declines in hardware, continues to run at peak levels, up 7% YOY. And consistent with our expectations, there doesn't appear to be a major rebound in store for Q3, with overall revenues projected to down between 0.5% and 5.5% sequentially. * The relatively small reduction in EPS may come as a bit of a relief to the market despite the weaker revenue stream. But we continue to think that we will need a better business environment for the company's transition in strategy to gain enough traction in the market to excite investors, and we don't anticipate that type of visibility until next year with Europe, Asia, and Latin America all slowing at the margin. While we are encouraged at the cost reductions and preservation of small profits despite the weaker revenues, we continue to see the stock as rangebound in the near term at about current (inexpensive) levels.

To: Elwood P. Dowd who wrote (92374)	7/28/2001 11:57:26 AM
From: Captain Jack	Respond to of 97611

El-That could help the bottom line of cpq if AOL pays a royalty to pop their service on more screens, they need every customer they can get to maintain growth targets. If no one pays,, put 'em all up like some smaller boxmakers have done for years. A few moments ago I dropped the best 'dial up' ISP there is, ATTGLOBAL. They are the sm bus part of T's isp plans. Was grandfathered in from many years ago prior to the service being purchased by T from IBM. I now have RoadRunner. T gave me great service and if RR is 1/2 as good they will be OK. Already they only support Internet Exploder--- changed back to Netscape so all hyperlinks would work correctly. Also dumped Outlook in favor of Netscape partially for the same problem with hyperlinks but more importantly to reduce the work of Norton. I've been online since '79 and have had only 1 virus for Norton to clean & remove (same one twice). Most malicious virus' arrive through Outlook,, even with the patches. Norton updates daily,,, cpq may go back to buying range soon. Hope not,, but 13.90s to 14.10s certainly has worked very well this year for many ST popS.

To: Elwood P. Dowd who wrote (92374)	7/30/2001 11:12:30 AM
From: Night Writer	Read Replies (2) \| Respond to of 97611

Compaq to Use Netscape as Default XP Browser? Jul 30, 2001 (ComputerWire via COMTEX) -- Speculation has started that Compaq Computer Corp is to use America Online Inc's Netscape 6 browser as the default on Windows XP-based PCs to ship later this year. The speculation coincides with the news that Compaq is to give AOL software priority over Microsoft Corp's MSN on XP machines. Compaq confirmed reports yesterday that it will receive a bounty for every user who signs up for AOL from the XP desktop on Compaq PCs. The manufacturer will include AOL's service as the main online service on the XP Start Menu, which is larger and less cluttered than on previous versions of Windows, and was a spot reserved for MSN by default. Microsoft condemned the move. During a conference call Friday, group vice president Jim Allchin reportedly accused the two companies of "hiding features from consumers" by diminishing MSN's role on the desktop. "I don't think it's a good thing for consumers and I don't think it's a good thing for the industry," Allchin said, evidently with a straight face. Meanwhile, developers working on Mozilla, the open-source browser engine used in Netscape 6.0 and future versions, began to speculate that Compaq is also looking at using Netscape as its default browser in XP machines. Under recently announced plans, Microsoft will allow OEMs to untie Internet Explorer from Windows - undoing the mechanism by which it achieved dominance in the browser wars and which sparked the Department of Justice's antitrust trial against the firm. According to a posting to the Mozilla Bugzilla bug-tracking list, a bug was spotted in the browser during testing on a Compaq XP box that was due to ship with Netscape. The bug occurred when Netscape was installed as the default browser. While Netscape appeared as the default browser, it would not appear as the default mail client. Speculation among Mozilla developers that Netscape may be lined up as Compaq's default XP browser kicked off when the posting concerning the bug was subsequently password-protected so it can now be viewed only by authorized Netscape employees, implying that it contains trade secrets. The Compaq deal is the latest development in the ongoing war between Microsoft and AOL for real estate on the XP desktop. AOL started approaching Windows OEMs long before talks aimed at seeing AOL carried on the XP CD collapsed. The company confirmed yesterday that it is talking to other PC manufacturers about deals similar to the Compaq one. By Kevin Murphy Network Briefing Daily: Issue , July 30, 2001