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


To: Wowzer who wrote (27440)6/11/1998 6:16:00 PM
From: John Koligman  Read Replies (1) | Respond to of 97611
 
Maybe that's why the stock has been down the last two days despite the new model barrage and the possibility of a jump upward based on today's analyst meeting and tommorrow's news conference. A stock will usually take a quick jump during one of these meetings if the street likes what it hears. No evidence of that today. One other thing that bothers me is that some months ago Compaq was saying 'forget about quarters 1 and 2'. Now, I'm hearing quarter 3 is a 'transitional quarter'???? Don't like it....

John

Rudedog - If you see this, your take on this 'transitional quarter' comment would be much appreciated, especially if you have any comment on it from Compaq insiders...



To: Wowzer who wrote (27440)6/11/1998 8:58:00 PM
From: Brett Trueman  Read Replies (1) | Respond to of 97611
 
Under the rules of purchase accounting, Compaq's consolidated income statement will reflect DEC's earnings only from the effective date of the merger. With an effective date of the middle of June, the consolidated income statement will then only reflect one-sixth of DEC's earnings for the quarter. This comes to two cents per share, rather than twelve cents. Given this, Compaq's earnings for the quarter on a stand-alone basis don't look so bad.