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

To: CGarcia who wrote (32709)	9/11/1998 11:12:00 PM
From: Night Writer	Read Replies (1) \| Respond to of 97611

Cgarcia, Compaq has been through the wringer due to channel problems, and buying DEC. Bear markets normally run for seven months average. Small and mid caps have been in a Bear market for some time. According to NBR this evening some great companies are 30% down at this point. Also Hedge Funds are currently liquidating. To me that means they are covering their short positions with buy orders. I take this as a Bullish sign. IMHO The Bubba problem is sort of like, buy on the rumor and sell on the news strategy. Only it was, sell on the rumor, and buy on the news. Ken Starr's dirty book is the news. Bubba is saying, "I'm sorry" to anybody that will listen. Who knows how it will turn out. At this point, it is in the market price. The important things going forward are earnings, and interest rates. Greenspan has indicated a more global view of interest rates. This has decreased the worry in that area, but not totally eliminated it. The second worry is earnings. Companies that make or exceed expectations will be rewarded, the ones that don't will be dumped on the market. This might produce some excellent long term investment opportunities. Let's hope Compaq has great earnings going into 1999, and during 1999. I am somewhat surprised that we didn't share Intel's good fortune today. I think Compaq is still their biggest customer. Of course Kurlak showed his ugly head today. I didn't expect him to surface until next week. Guess he needs to change his announce pattern so he is not so obvious. I have a feeling that if the closing price is above $80 or $85 on option expiration day that he will lose a lot of Intel shares for his clients. NW