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

To: robbie who wrote (19128)	3/3/1998 9:48:00 PM
From: Bill Fischofer	Read Replies (2) \| Respond to of 97611

CPQ Forecast The Street loves to worry over things and right now they're fretting over CPQ's ability to digest DEC. This means CPQ will be rangebound until July when they complete the DEC merger and all of the one time charges associated with that acquisition are spelled out in CPQ's 2nd quarter report. After that worry is passed folks will start to look forward to NT 5 and Merced and it will be painfully obvious to even the most short term thinkers that CPQ has positioned itself to ride these twin tsunamis better than anyone. As a result, I believe 70 to be a conservative YE98 price target with a trip back to triple digits in the cards by mid 1999. Today CPQ broke below its 200 DMA. The last time a significant excursion below that level occurred was in March 1996 when CPQ fell briefly into the (split-adjusted) 7s. CPQ did not regain its footing above that support until mid-July 1996. My reading is that we are seeing a replay of that buying opportunity which should persist for as much as a few months before closing. This is an ideal time to build a position in what will be the preeminent IT company of the early 21st century.