Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Andreas who wrote (27691)	6/14/1998 12:41:00 PM
From: William King Wrignt	Respond to of 97611

Found some good reading on CPQ news.com Regards, wkw

To: Andreas who wrote (27691)	6/14/1998 2:13:00 PM
From: Xpiderman	Read Replies (1) \| Respond to of 97611

>>cpq's p/e ratio since May 18, 1998 is 25% below the industry average. IMHO this lower p/e is directly a result of uncertainty with cpq's near term earnings outlook resulting primarily from: (i) excessive inventory and (ii) the dec acquisition. Here is the CPQ earning history before this DEC merger. If DEC data was combined, it will only look much worse. CPQ 92 93 94 95 96 97 98 99 Mar $0.07 $0.08 $0.16 $0.16 $0.16 $0.27 $0.01 $0.30e Jun $0.05 $0.08 $0.16 $0.18 $0.17 $0.30 $0.00e $0.32e Sep $0.13 $0.08 $0.15 $0.18 $0.24 $0.36 $0.25e $0.37e Dec $0.15 $0.12 $0.18 $0.23 $0.32 $0.43 $0.37e $0.46e Year $0.40 $0.36 $0.65 $0.75 $0.89 $1.36 $0.63e $1.45e Yr/Yr n/a -10.0% 80.6% 15.4% 18.7% 52.8% -53.7%e 130.2% P/E range: High 20 20 20 17 22 36 35 Low 9 9 10 9 9 14 17 Please note: CPQ is trading at the very high end of its historical P/E range. What is the chance for CPQ to expande its P/E to industry average of 40? So I think CPQ is fairly valued at most.