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

To: Sasha who wrote (20772)	3/8/1998 8:22:00 PM
From: Barron Von Hymen	Respond to of 97611

If you're worried about getting a margin call that much and you don't know that much about margin requirements and you can't afford a margin call- the answer is simple, don't use margin. Risk is just too great.

To: Sasha who wrote (20772)	3/8/1998 10:16:00 PM
From: Stevefoder	Respond to of 97611

As a rule - Do not make any investment that will keep you awake at night. It sounds like buying CPQ on margin would keep you awake. Personally I would not buy big in any stock using margin. Too many things can go wrong and ruin your year. Steve S.

To: Sasha who wrote (20772)	3/9/1998 1:50:00 AM
From: Lachesis Atropos	Read Replies (1) \| Respond to of 97611

Buying into computer techs right now is very dubious. Did you read www.breifing.com editorial on Friday? This is like trying to catch a falling knife. I believe they will go sideways at best. Then down slowly. From www.breifing.com "Our analysis of Friday's session can be summed up in one word - absurd... That may seem simple and harsh to many of you, but we find no better way to explain a market that rallied sharply higher the day Motorola warned that earnings would fall short of estimates, and the day after Intel made a similar announcement... Current quarter earnings estimates in the tech sector are coming down fast and it's still very early in the warnings season... What's particularly disturbing about this fact is that the problems aren't related to Asia but here at home... The full impact of the Asian crisis won't be felt until quarters two and three of CY98... Unlike past quarters, the problems aren't confined to one industry... Chip, chip equipment, disk drive and PC stocks are all warning of earnings trouble ahead... Compaq is the sector's latest victim... After a number of cautionary comments in recent weeks, the firm confirmed the market's worst suspicions and announced that it would break even in the first quarter on flat revenues from a year-ago... Street had been expecting CPQ to earn $0.35... Competition and pricing pressures were cited for the shortfall... If PC growth estimates didn't come down with the Intel news they will now... And fewer PCs sold means fewer chips needed, disk drives made, operating systems installed, etc... If you ignored the warning signs on Thursday, you got lucky Friday... Don't expect lady luck to smile on you again today."