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

To: Tony B who wrote (32535)	9/9/1998 6:50:00 AM
From: rupert1	Respond to of 97611

Has the McGuire affect dissipated? Will the US markets carry through today? Can CPQ hold its gains and eke out another 3% rise today to take it to about $33? Europe mid-morning is mixed and not very bad. There are some smaller bourses on the plus side but the main ones are all down. However, the biggies e.g UK, France and Germany are down by 1/2 % or less. The initial fall in the UK was caused by "disappointment" at very strong growth figures which deflated hopes of an early reduction in interest rates. Strong growth, however, should help COMPAQ. The fall in Japan and HK was anticipated on a technical basis after the recent run up. It is noteworthy that some of the smaller exchanges did well last night. While commentators point out that the fundamentals have not changed in Asia, I think they have begun to change. Stronger Yen, regional restrictions on currency and equity speculation, strenghthening of banks, gradual adoption of growth policies. Lower interest rates to come from the US. Russia is looming large in the european media again this morning if only because some of the possible permutations make interesting speculation. But my impression is that the concern is not enough to destabilise markets - yet. There is lots of european press speculation about the Clinton presidency. The main theme is that it is nothing to do with absolute values or morality and everything to do with the way the US fights its politics. For this reason, they consider/suggest/accept that Clinton may be forced to resign. Some even suggest that if Americans cannot observe their own constitutional distinction between church and state and if they are going to ridicule their elected head of state even when he is abroad, and turn the lawyers on him at home, then it may be better for all of us, if they got someone else to do the job. It is about a month before CPQ earnings - in that time it should begin to approach the $38 level again - the trick is knowing when. It could be two weeks before, with a gentle decline thereafter, or five days before. What really matters is what it does after earnings. All this assuming there is no bomb shell in the form of an another acquisition. Victor