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

To: Elwood P. Dowd who wrote (27831)	6/18/1998 11:11:00 AM
From: Andreas	Read Replies (3) \| Respond to of 97611

Demand for cpq stock has dropped as institutional holdings has likewise dropped. Lets not forget the fact that nearly 80% of cpq was held by institutions last september. This number has dropped to about 58% at this time (approximately 1/5 of all cpq shares have been transferred out of the hands of institutions and into the hands of individuals). I believe that the institutional holdings as a percent of total cpq stock will go up but only after there is more visibility as to earnings. It's too soon yet. Can you imagine what will happen to demand when the institutions that used to own cpq six months ago decide to get back on board? That is why all the recent good news (which frankly is minor good news and does not equate into earnings today but rather in the longer term) is not having much effect on the stock price. Add to this the hesitancy among investors at this point in time (asia, currency issues, interest rate issues, etc) and it becomes a little clearer why this stock is not moving. We need to be patient a little longer. CPQ is, in my view, doing the right things. It is not merely a box maker (not when only 50% of revenues come from pc sales). It is diversifying and becoming a global one stop shopping IT behemoth. When these efforts translate into earnings and asia is behind us then you will begin to see this stock take off. When will this occur you ask? If I knew that I would be as popular as Chauncey Gardner (played by Peter Sellers in the movie "Being There"), but I do believe cpq has the ability to pull it off. EP's ego is too big to let him fail.