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

To: Tom M who wrote (25367)	5/1/1998 11:07:00 AM
From: Charles Skeen	Respond to of 97611

Re: Short Interest and Future Prospects I think some of the significance of the high short interest position is reduced by the fact that much of this is held by arbitragers who will deliver the CPQ stock they receive when the DEC merger is concluded. Fundamentally, I think that the stock is at a reasonable buying level vs post merger earnings. This assumes some merger savings, gains in revenue from DEC with more effective marketing, and normalized inventories on the CPQ side. Don't ask me for a detailed earnings analysis, though. These are somewhat intuitive projections. Looking at the chart, I can see an intermediate term move to the 32-33 area. The price has just (once again) broken the 50-, 100-, and 200-day MA's. I'm hoping that the breakout will be sustained this time. But I'm leery of the overall market and I am ready to jump out at the slightest hint of LT bonds going over 6% again. Then too I may just take profits on Monday or Tuesday. If things remain calm on the bond front, I may just hold/buy back for the 32-33, and ultimately perhaps for 39-40, per todays SSB recommendation. For a chart see: pcquote.com Meanwhile, a technical analyst on CNBC (Ken Tower of USB? Securities) would avoid CPQ -- thinks it could go as low as 20 from here. Thinks the same about one of my other holdings (LSI). I guess it is differences of opinion that make markets. Charlie.