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

To: Elwood P. Dowd who wrote (45818)	1/28/1999 8:50:00 AM
From: rupert1	Read Replies (1) \| Respond to of 97611

El: Already we have a variant on yesterday's big theme. Yesterday it was a one-time 5 cents saving on tax. Now, according to Kumar, it is not so black-and-white and quite different: "He said better margins added 2 cents per share to earnings, and the tax rate, which he estimated at 19 percent, down from 26 percent a year ago, generated another 2-3 cents". What's wrong with better margins? What's wrong with a better tax rate - especially if it's ongoing. And Revenues of $9.10 billion on the way to $50 billion aint chicken feed. Apparently Kumar agrees because he recommends a BUY. Notice also, he is not griping about the earnings, but about the constitutent elements of the earnings surprise. "The quality of the earnings surprise is not that great". It may not have been a bad idea to schedule the analysts meeting two days after earnings. It allows all the speculation to get aired and gives the company time to sharpen its presentation.