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

To: rudedog who wrote (44894)	1/24/1999 9:48:00 PM
From: jim kelley	Respond to of 97611

Dog, Well you can use whatever method you chose. I prefer to use CPQ's 10-Q statements even though they are not audited. It is certainly unclear how you arrived at a 7% after tax profit when CPQ You are assuming that CPQ 10-Q for the third quarter was an anomaly. It is the first report showing the combined companies operating together as a merged entity. The 1.3% after tax profit was the result. Layoffs totaling 9000 by Q4-99 could yield a savings of 135M for the quarter in operations. This would amount to a 6 cent per share after taxes. Clearly, CPQ's costs in this area should reach 285 M per quarter sometime in 1999 but not this quarter. Then this would result in 12 cents per share. We shall see soon what CPQ has accomplished this quarter.