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

To: Elwood P. Dowd who wrote (29433)	7/17/1998 4:30:00 PM
From: John Koligman	Respond to of 97611

El, Article in today's WSJ about CPQ's cut in Asia projections... As for that market cap, yeah, pretty high. If you listen to the folks on the Dell thread, they are ready for a couple more splits, it seems they expect to see Dell up there with GE and Microsoft shortly... GTW has had quite a move, hope we parallel, it's gone from 25 to 67 pretty quick... Compaq Expects to Stay Profitable In Asia, but Lowers Sales Target Dow Jones Newswires SINGAPORE -- Compaq Computer Corp.'s Asia-Pacific unit Friday lowered its sales target in the region amid the region's continuing financial crisis, but said it will remain profitable. Compaq Computer Asia Pacific Pte. Ltd. generates about 5% to 6% of Houston-based Compaq's global sales. Unit sales in the region fell 15% during the second quarter ended in June, as global sales soared 36%. Industrywide, continued weakness in Asia, currency issues, PC inventory problems, and pricing pressures are just some of the woes that computer giants faced in the second quarter. Compaq said it will cut costs and excess inventories to maintain its profitability in the region. It declined, however, to give an indication of its profits in Asia. Year-ago profit figures weren't available. Meanwhile, Compaq plans to make cuts in the 4,200-strong sales-and-marketing work force in Asia. The company pointed out that it was a combined work force as a result of Compaq's acquisition of Digital Equipment Corp. Compaq said it will release details of a specific amount of job cuts at the unit at a later date. Earlier this week, the parent company reported a net loss of $3.63 billion for the second quarter, compared with a year-ago profit of $257 million. Revenue rose 5.7% to $5.83 billion. Looking forward, Compaq said there is a lot of uncertainty in the third and fourth quarters in Asia. In Indonesia, business has been hurt dramatically compared with the pre-crisis days. The company's personal-computer shipments to the country have tumbled between 70% and 80% since the crisis started. Officials said even Singapore's PC market is starting to contract. Company officials declined to give details about other countries in the region.

To: Elwood P. Dowd who wrote (29433)	7/17/1998 4:41:00 PM
From: Roads End	Read Replies (2) \| Respond to of 97611

EL..I caught the market cap statement as well. I guess that's what you get when you tell analysts you are "comfortable" with estimates of 6 cents for the current quarter. Looks to me that CPQ really doesn't want to grow from the way management talks and acts. What do you suppose the market cap of Dell will be in the year 2000? Just a little disgusted Steve