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

To: PCSS who wrote (45586)	1/27/1999 12:19:00 PM
From: rudedog	Read Replies (1) \| Respond to of 97611

Michael - I agree, looks like 'sell the news' behavior. I also like victor's prediction, a little consolidation at this level as the folks who were just doing a short term play around earnings settle out, then onward and upward. I thought it was particularly interesting that although the revenue was just about where everyone expected, earnings were higher - that means CPQ has done a good job of cutting costs, better than planned. Since we know that a lot of the real cost reductions are in 1H99, that says that we should be on an increasing percent earnings curve. I'm waiting to find out from Jim Kelley how CPQ managed to perform this impossible feat. I'm sure he will offer some arcane explanation involving analysis that no one can follow... Remember that CPQ put the last few days of the quarter into 1999 to get a head start on the new year. Looking at these numbers I can see why.