Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Aljorma who wrote (50305)	2/27/1999 12:44:00 PM
From: rupert1	Respond to of 97611

Fred: I think your questions are right on. May I suggest you read this ING analyst's opinion. Scroll down to where he lists the fundamental improvements in CPQ position. Here is the extract, but I recommend you read the whole thing: _____________________________________________ Reiterate Buy Rating on Compaq Having sold off in response to news of a weak start to Q1, CPQ shares are currently trading at just 21x our $1.73 EPS estimate for 1999, and at less than 16x our $2.29 EPS estimate for 2000. It is infrequent that investors have a chance to buy dominant technology companies at a discount to their growth rate, yet we believe that such an opportunity exists now. As a result, we reiterate our Buy rating. Overall, Compaq has started 1999 in a much stronger fundamental position than it started 1998, with: -channel inventories at manageable (3-4 week levels), -dealer terms/conditions (and therefore contra revenue exposure) reduced, -a new multi-channel (indirect/direct) sales and distribution strategy progressing, and -integration of Digital on-track. As a result, we expect fundamentals to continue improving sequentially, along with Compaq's ability to capitalize on the power inherent to its dominant market position in the rapidly-consolidating PC industry. Our 12-month price target remains $60-65, or 26-28x expected 2000 EPS. ________________________________________ Full analysis: Message 8065111

To: Aljorma who wrote (50305)	2/27/1999 12:58:00 PM
From: Kenya AA	Respond to of 97611

Fred: These are my half-baked thoughts on your questions .... Is compaq any better off than it was 6 months ago when the stock was around $30 - Yes Has the company done enough to improve it's position in the computer sector? No, but it's not an easy task. Is this a reasonable place for the bottom. $34 is more reasonable. I bought this stock with the long term in mind. Watching this stock and the entire industry makes me think that It's going to be very difficult to pick winners and losers. Increased prices for components along with sub $1000 PC's. Seems to me this is not going to be a high growth area. Do television companies continue to make money? This is the whole reason why Compaq is trying to morph into something other than a "PC company." "Television companies" like PHG and SNE still make money, but they do a lot more than make TVs. AM I wrong or is this industry going to be giving these PC's away soon. I don't think the PC industry will be giving away PCs any time soon, but I'm sure others will - somebody like T, for example. K