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

To: PeterR1700 who wrote (8213)	10/30/1997 2:51:00 PM
From: Dr. Doktor	Respond to of 97611

[ML report on cpq] Price: $63 12 Month Price Objective: $100 Estimates (Dec) 1996A 1997E 1998E EPS: $1.72 $2.73 $4.15 P/E: 36.6x 23.1x 15.2x EPS Change (YoY): 58.7% 52.0% Consensus EPS: $2.68 $3.41 (First Call: 28-Oct-97) Q4 EPS (Dec): $0.63 $0.89 Institutional Ownership-Spectrum: 64.2% Investment Highlights: ú Stock remains the best value in the group, trading at 14x our calendar 1998 estimate of $4.15 vs. the group average of 20x. ú Believe the stock will show marked appreciation over the next few months, as estimates are refined upward and the market share/gross margin story materializes further. ú Reiterate our Buy investment opinion on the shares and $100 price objective. Fundamental Highlights: ú General business trends for the first month of the quarter appear very good from a product and geographic standpoint. ú North American business is strong, European business to date is exceptional, and even Japan is showing "fair" strength (a nice surprise off weak expectations). ú Corporate and consumer desktop business is robust, enterprise is very strong, and overall notebooks are solid but pricing in the US remains tough (not a surprise) due to Toshiba attempting to protect their share position. Bulletin

To: PeterR1700 who wrote (8213)	10/30/1997 2:52:00 PM
From: Joe Griffin	Read Replies (2) \| Respond to of 97611

RESEARCH ALERT - Dell , Compaq restarted NEW YORK, Oct 30 (Reuters) - Salomon Brothers said on Thursday it restarted coverage on shares of Dell Computer Corp and Compaq Computer Corp (CPQ) and in the process upgraded both of them to buy from hold. Analyst Richard Gardner Jr said Compaq was leading vendor of desktop and servers in world, and is the most diverse of pure personal computer plays in terms of geographic reach, product breadth and customer base.Stock trading at all time high price-to-earnings ratio but should continue to trade at premium to Standard & Poor's 500 index. Dell was leading direct, build-to-order manufacturer of personal computers and servers in world, he said. Believe Dell can maintain or even boost its return on investment capital in coming year with higher consumer mix, higher mix of internet sales and continued strong earnings growth, he said. Dell stock fell 3-3/8 to 80-1/8 while Compaq fell 1-6/16 to 62-1/16.