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

To: Wade Bennett who wrote (43832)	1/17/1999 3:03:00 PM
From: Kenya AA	Read Replies (1) \| Respond to of 97611

Wade: I feel that the 3-4 point decline I predicted surrounding CPQ earnings would happen whatever the earnings/news is. The scenario happens with many stocks under similar circumstances and is strictly TA (in other words market psychology - human nature) driven. As we approach the earnings announcement I expect the stock to move up because expectations for good news are building and, as I said, earnings in general this week should be better than expected. How much that move up is depends upon how good the "leakage" about the good news is. Since the market is forward looking, CPQ's stock price will already reflect all the good news before the actual announcement. If the good news is already in the price then some will want to take profits (Intel is a good example). They may take them before the announcement - just in case Earl the Pearl and Eckhard are still the lying bastards they were last year. <VBG> If they expect very good forward looking guidance or "big elephants" that they think no one else knows about, they may wait till after. The point is, that once "everyone" knows "everything" profits will be taken - I know I will be taking them! I'm more "concerned" with the rebound from the inevitable profit-taking. I think we're in for a decline in the market in general at the end of January or beginning of February so that is going to work against CPQ's upward progress. But all that is just temporary - I expect CPQ to do very well this year and I plan to have a lot of fun trading it! K