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

To: hpeace who wrote (13835)	1/17/1998 4:33:00 PM
From: WeisbrichA	Read Replies (1) \| Respond to of 97611

The market had to absorb approximately 75,0000,0000 shares since the mutual funds reduced their CPQ holdings from about 81% to just at 70% of total shares. It takes a while to absorb 75M shares. If you dump too fast... big drop everyone loses. If shares divested over period of time, then major market imbalance less likely to occur. Lets say that the average volume of CPQ is about 8M per day since about Oct? and we have had about 75 trading days since then. Seems like an extra Million share sells a day would clamp down on the upward bias of the stock. Question.... Are the funds finished reducing the weight of CPQ in their portfolios. I beleive this is a major factor in the near tearm future of CPQ stock prices. I wish I could get my hands on a record of net fund purchases/sales of CPQ for the last 12 weeks. My hunch is that most selling by funds occured before Jan. But how explain Jan action so far? Other techs with minor asian exposure rebounding better on % basis. Ther's something scwoo wee awound hea! To many funds with too big % of outstanding stocks makes me nervous. I think funds are the tail that wags the compaq dog. Jan-Mar usually brings in new $$ to funds, but there is "safe haven" money now comming into US. Are we about to see a Feb blast off when the CPQ shares are absorbed by new money? Also I have not seen any indications how Roth IRA will affect money flow. Is this going to be a factor of concern> Boy, I get carried away sometimes. RW