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

To: Mohan Marette who wrote (17849)	2/22/1998 5:55:00 AM
From: peacelover	Read Replies (1) \| Respond to of 97611

Hi! Amen!!! These will be the fuel to the CPQ rocket. Look at AOL, fundamentally not at all in a class with CPQ (and I believe the short squeeze is its underpinning fundamentals), its stock is in stratosphere, IMHO. Long live shorts, they are "anal-yst's" suckers. peacelover (with exception to "anal****)

To: Mohan Marette who wrote (17849)	2/23/1998 9:11:00 PM
From: Maverick	Read Replies (3) \| Respond to of 97611

BREAKING UP IS HARD TO DO: It's been a five-year-plus relationship, but Deutsche Morgan Grenfell Inc. computer analyst Michael Kwatinetz has ditched Compaq Computer Corp. (NYSE, CPQ). He recently removed his ''buy'' recommendation and instead rates Compaq an ''accumulate.'' ''Compaq has been very, very good to me,'' Kwatinetz writes in an angst-ridden note to clients, noting that the Texas-based computer maker's stock has appreciated roughly 18-fold since he first began pushing it in late 1992 and never wavered. Kwatinetz explains the downgrade mostly by the risks associated with Compaq's acquisition of Digital Equipment Corp. (NYSE, DEC), which is expected to close later in the year. ''Its strategy appears sound, but execution risks are high,'' he says. Compaq, however, still has its fans. One is Richard S. Chu, an analyst with Cowen & Co. in Boston. ''I'm a strong believer that brand and logistics will drive consolidation'' in the computer industry, Chu says. ''I think people underestimate what Digital brings to the party.'' Chu also says Compaq management will be a party pooper by taking an ax to Digital's workforce. He reckons the company can cut 7,000 of Digital's 53,000 employees and save $500 million in the process. That alone could boost his estimates of Compaq's 1999 earnings by 11 percent. Says Chu, who rates Compaq a ''strong buy'': ''They should have plenty of opportunities to cut costs.'' Cold to be sure. But if Chu's guess on Compaq's tough love is right, Kwatinetz may wish he never walked out on his longtime dance partner. From SJ Mercury News.