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

To: The Duke of URL© who wrote (93626)	11/7/2001 11:00:13 AM
From: Elwood P. Dowd	Read Replies (1) \| Respond to of 97611

Deutsche Banc says BUY COMPAQ by: skeptically 11/07/01 10:52 am Msg: 260371 of 260374 Deutsche/PC Cos-2:Sees Gateway Benefiting As Direct Vendor 11/07 10:30 AM (DJ) Story 4894 (AAPL, CPQ, DELL, GTW, HWP) Deutsche Banc's Elling sees Compaq Computer Corp.'s (CPQ) proposed merger with Hewlett-Packard Co. (HWP) as a positive event, and initiated coverage of Compaq's stock to a buy. Elling's 12 -month price target for Compaq was set at $12 a share, or eight times his 2003 estimate for earnings before interest, taxes, depreciation and amortization. Shares of the company closed Tuesday at $8.50 each and are currently trading at $7.90, down 7%. Gateway Inc. (GTW) was given a 12 -month price target of $9 a share, or 7.5 times his 2003 EBITDA estimate. Gateway shares are currently unchanged at $7.14. He initiated coverage of the company at a buy rating, partly because "Gateway still very much benefits from its roots as a direct vendor," bypassing the retailers. Apple Computer Inc. (AAPL) received a market perform rating from the analyst, because the stock is already trading at 17 times his fiscal 2002 EBITDA estimate, and 13 times his fiscal 2003 EBITDA estimate. He gave Apple's stock a price target of $18 a share, just lower than Tuesday's closing price of $19.46. Shares are currently trading at $19.55, down 0.%. -Amy Braunschweiger, Dow Jones Newswires; 201 -938 -2205; amy.braunschweiger@dowjones.com (END) DOW JONES NEWS 11 -07 -01 10:30 AM

To: The Duke of URL© who wrote (93626)	11/7/2001 11:19:52 AM
From: Night Writer	Read Replies (1) \| Respond to of 97611

RESEARCH ALERT-DB Alex Brown starts PC makers NEW YORK, Nov 7 (Reuters) - Deutsche Banc Alex. Brown initiated coverage of several computer makers, including Apple Computer Inc. <AAPL.O> with a "market perform" rating and Dell Computer Corp. <DELL.O> with a "buy" rating. It also started Compaq Computer Corp. <CPQ.N> and Gateway Inc. <GTW.N> with "buy" ratings. In a research note, DB Alex Brown analysts said Apple has a strong balance sheet, an excellent management team, a loyal customer base as well as a powerful brand. Its fundamental challenge remains building its user base and expanding its opportunities beyond the traditional desktop/notebook market, which the investment firm believes will be an uphill battle. DB Alex Brown said Dell is the best-positioned personal computer firm because of the efficiencies of its direct model and its opportunity to exploit efficiencies in higher-growth areas like servers and storage. Dell's future growth rate will hinge on its ability to leverage its direct model to gain market share outside the United States, the investment firm said. DB Alex Brown said it still believes the proposed Hewlett-Packard Co. <HWP.N> and Compaq merger is a positive for Hewlett-Packard. While Compaq's near-term revenue and earnings outlooks remain cloudy because of weak PC trends and a slowdown in corporate information technology spending on serves and storage devices, DB Alex Brown said it thinks management is taking necessary steps that should position it favorably when the economy improves. The investment firm said it expects Gateway to burn about $50 million to $60 million in cash in the fourth quarter after capital expenditures. With much of the industry and company bad news already in the stock, DB Alex Brown said it thinks downside in Gateway shares is relatively limited. Shares of Apple were last off 6 cents at $19.51 and shares of Dell dipped 8 cents to $26.16. Compaq shares fell 66 cents to $7.84 and Gateway shares dipped 2 cents to $7.12. ((-- Reshma Kapadia, New York technology desk, (646) 223-6191)) REUTERS