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

To: John Koligman who wrote (18264)	2/26/1998 6:57:00 PM
From: Roads End	Read Replies (1) \| Respond to of 97611

John...The guy from the Dell thread seems to have a lot of inside information, most of which was generated "inside" his myopic mind.

To: John Koligman who wrote (18264)	2/26/1998 7:06:00 PM
From: Elwood P. Dowd	Read Replies (2) \| Respond to of 97611

John..if the post were from anyone but Jim Kelley, I might be concerned. He has been panning CPQ for months and probably will for months to come regardless of earnings, mergers, and/or inventory levels. Stephen

To: John Koligman who wrote (18264)	2/26/1998 8:27:00 PM
From: Maverick	Read Replies (3) \| Respond to of 97611

COMPAQ COMPUTER CORP. (CPQ) 32 15/16 -1 1/16. In very active trading, shares of computer maker and services provider trade lower following a ratings downgrade from Salomon Smith Barney. Analyst Richard Gardner cut its rating on the stock from "outperform" to "neutral" due to concerns over "too much inventory in the sales distribution channel." According to Mr. Gardner, he feels that Compaq has begun to negotiate with distributors to carry additional inventory even though the channel is already above five weeks. Because of this inventory build-up, he thinks that Compaq remains at a cost disadvantage to Dell Computer (DELL 130 1/8 +3/16) and Hewlett-Packard (HWP 65 1/16 +7/16) and does not see an improvement in this situation until inventory levels decline from above five weeks to 15 days. To be sure, the downgrade news has not been well received by market participants as the stock had already lost some momentum before today's ratings cut after trading near the $37 mark earlier this month following the decision to acquire Digital Equipment Corp. (DEC 58 1/2 -1 5/16) for $9.6 billion in cash and stock. Subsequently, management admitted that it saw a "tough and challenging" period in 1998 from the Asia Pacific region due to the problems ailing those particular economies. Accordingly, management does not expects growth from the Asian region to match last year's expansion, which reflects and is consistent with the downgrade the stock received today due to its perceived inventory problems. By Briefing.com.

To: John Koligman who wrote (18264)	2/27/1998 12:46:00 AM
From: Sonki	Read Replies (2) \| Respond to of 97611

John, I only posted cpq insider sales because I kept wondering why cpq was not particpating in the rally after being the most active for last 20 days. Everyone should have known. Anyway, now that this downgrade is out of the way, meaning who ever wanted to sell has sold, things can be back to normal maybe. Would you have paid for $60 for DEC? if you like DEC so much then why wouln't u have bot for $34 few months ago? As for cpq's growth rate, maybe it could be compared to that of IBM or Sunw and not dell. They have always been two VERY differnt companies. Management style is also different. btw: Dell, MSFT and PFE (three of my fav.compaines) all have insiders ownership of approx 25%.