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

To: William Hunt who wrote (25369)	5/1/1998 10:53:00 AM
From: Elwood P. Dowd	Read Replies (1) \| Respond to of 97611

CNBC just had a technical analyst on "Talking Stock" segment who said that his group is steering people away from CPQ and recommending IBM and/or HPW. Said he thinks CPQ could go to 20. El

To: William Hunt who wrote (25369)	5/1/1998 12:08:00 PM
From: Ibexx	Read Replies (1) \| Respond to of 97611

Bill and thread: DEC acquisition accretive in 1998 ____________ Friday May 1, 11:44 am Eastern Time RESEARCH ALERT - Compaq raised to buy NEW YORK, May 1 (Reuters) - Salomon Smith Barney raised its rating on shares of Compaq Computer Corp. to buy from neutral, a market source said on Friday. -- Analyst Richard Gardner said channel inventories were coming down and he has heard inventories are in the seven to nine week range in the U.S. corporate channel. -- Inventories coming down because there was more price elasticity than Gardner originally estimated in the market place and Compaq's price cut promotions on sales out of the channel, he said. -- Gardner said Compaq cut back on its bill plan this quarter and is shipping less into the channel so products there can sell through. -- Said Copmaq is committed to getting inventories down by the end of the June quarter and there is a good chance inventories could come down to four to five weeks. -- A proxy was imminent for Compaq's acquisition of Digital Equipment Corp. (DEC - news) and Gardner said there is a 99 percent chance the deal will close by the end of June. -- Digital could add $0.35 to $0.50 per share to Compaq's fiscal 1999 earnings, now estimated at $1.51 per share. -- Compaq suffered immensely from a huge decline in average selling prices but Gardner thinks price declines could moderate and comparisons will get easier in the second half of 1998. Ibexx