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

To: gc who wrote (19472)	3/5/1998 12:38:00 AM
From: mozek	Respond to of 97611

Thread, I think it's possible that what's going on could be good for CPQ in the long run. It may take a while for this to sort itself out, and there could be more fallout from Asia, but here's the thought. If Intel's problems are caused by a combination of CPQ reducing inventory and using other manufacturer's chips, the next Q report will show reduced inventory levels. This will be interpreted as positive and, unless there are major market factors causing a broader market decline, this could be quite good for the stock price. As far as SE Asia & stock market in general, the selloff tomorrow will probably set the tone on the overall market for the next couple weeks. My bet is that the DOW will correct substantially if we have more negative news out of SE Asia, which is likely. It's run up quite a bit in a very short period of time but was mostly led by health in the techs. As far as I can tell, the broader market doesn't have better fundamentals than it did when we were around 7400. The biggest difference between then and now is that tech earnings didn't look nearly as bad as some were predicting. Just some thoughts. Mike