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

To: hpeace who wrote (11750)	12/18/1997 10:05:00 PM
From: Kai-Uwe	Read Replies (1) \| Respond to of 97611

Some good news on a not so good day! K. COMPAQ COMPUTER 09:53am EST 18-Dec-97 Williams MacKay Jordan (William C. Conroy, CFA) Compaq's 4Q Business Remains Strong * Concerns over Compaq's fourth quarter, and inventory levels specifically, have risen in recent weeks. We continue to believe that the company has made dramatic progress reducing inventory on its own shelves and in the channel. Versus a year ago, weeks of inventory in the channel are down significantly, as is the level of incentives offered to the channel. * A rationalization of the full-service dealer network may be in the works. To improve service, Compaq may reduce the number of dealers qualified to provide both sales and support, by concentrating the support function within a smaller universe of dealers. Should the company pursue this strategy, we think it could both reduce costs and increase the quality of service. * Sales of computers at or below the $1,000 price point remain good. Mid- and high-end desktops appear to be stronger at this time. We remain convinced that the sub-$1,000 machines are profitable (as are the monitors sold with them) and that they cannibalize sales of very few higher-priced Compaq models. * Our eps estimates are still $0.83 for the fourth quarter, $2.67 for 1997, and $3.51 for 1998. Based on those figures, the stock sells at 20.8X and 15.8X, respectively, 1997 and 1998 earnings per share estimates. Our investment recommendation remains BUY.

To: hpeace who wrote (11750)	12/18/1997 10:25:00 PM
From: edward miller	Read Replies (1) \| Respond to of 97611

>> ten yrs from now this will be looked at as another buy >> of the century on cpq.... OK Steve, Are you saying that right now is a "buy of the century", or that any time in the next few months will be a "buy of the century"? If right now, then you are saying that CPQ will not be significantly lower during the next year. Correct? I thought you hinted in a post within the last 2 weeks that CPQ could be purchased for less before mid-1998? Which is the scenario you really believe? Your thoughts please, Ed Miller

To: hpeace who wrote (11750)	12/19/1997 12:03:00 AM
From: Dulane U. Ponder	Read Replies (1) \| Respond to of 97611

Steve, do you think there's any chance of moving below 50 in the near term. Want to buy more but trying to decide if cpq will see 45 in the next week or so.