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

To: Elwood P. Dowd who wrote (18928)	3/3/1998 9:31:00 AM
From: ACEINVESTOR	Respond to of 97611

ML Report Summary from YAHOO msg. Board. <<<Subj: Merrill Lynch Bulletin/Painter By: Oswil Date: Mar 3 1998 5:32 A.M PST Reply To: Msg. 13051 by Profit_Killer I don't know if any of you have seen this, but I just downloaded a Merrill Lynch Bulletin dated March 2 that briefly reviews a presentation by Earl Mason, CPQ CFO, at the ML Technology Conference. The name on the report was Lucianne Painter. The basics in the report are as follows. Compaq bullish on Growth / ML rates it as a long term buy The following are quotes from the ML report which review Mason's presentation: "The acquisiton appears to be jprogressing on plan (all the appropriate filings have been made, CPQ has not received any resistance to date from the appropriate authorities). It looks as though the deal could close by late April, at the early end of the April-June time frame. This would meet our best case scenarios view of sooner=better." "We believe no new acquisition activity should be expected until the DEC acquisition is properly digested. This in our opinion, indicates at least through the end of this calendar lyear, which we believe is good news." "Compaq gave an update on business in 1Q98, though it noted that the commentary was only for January, as February actuals are not yet available. (We expect to provide an update late this week when the February actuals are in.) * Japan/Asia remains weak, as expected, and is reflected in our numbers * Latin American remains mixed (with mexico strong, and Brazil weak), as expected Europe remains stron, on target with an aggressive plan North America's sell-thru is lquite stron, although the company noted that the pricing environment is a little tougher than originally thought. The company did not give any change in earnings guidance for the quarter "We are not at all surprised by the 'aggressive pricing environment' comments. Remember that the first quarter is traditionally the product transistion quarter, and over the past 7 years has always seen the toughest pricing environments." "If a more aggressive pricing environment were to continue through the rest f the quarter and were to impact gross margins, we note that Compaq does have some spending flexibility on the operating expense side." "Compaq is bullish on ists growth for the year, with key growth enablers being new products, the services business, pushing the price/value envelope and ocntinued distributions efficiencies." "The operationa reengineering plans continue to be successful and are still proceeding on plan." There you have it. Please feel free to pass it around and offer comments. Personally it seems like a pretty positive presentation on the company and its stock. Will keep all posted if I get other material. >>>>>>> messages.yahoo.com@m2.yahoo.com Ace