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

To: kahunabear who wrote (20821)	3/8/1998 10:02:00 PM
From: Chris	Respond to of 97611

My argument is based on history. Look back at March 1996 when a similar situation occurred with CPQ. By the end of the first quarter CPQ had shocked analysts by reporting record earnings. While I don't see this announcement as completely similar, I do believe that Pfeiffer will do everything he can to return to record profits as soon as possible. Analysts do not project one quarter at a time. Your argument that the stock is worth $15 would assume that CPQ will fail to increase earnings for the entire year. For now that is not a given. If and when it looks as though CPQ cannot return to 27% growth (hopefully more with its acquisition of DEC), then the stock will be worth $15.