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: hlpinout who wrote (50923)	3/2/1999 6:29:00 AM
From: Mao II	Read Replies (1) \| Respond to of 97611

HIO: Thanks for this very interesting story from the Journal. I'd say it supports fully the that the current trashing is "overdone." At the same time, it clearly shows loose lips sink ships. M2

To: hlpinout who wrote (50923)	3/2/1999 6:35:00 AM
From: rupert1	Read Replies (4) \| Respond to of 97611

Morning HIO: The WSJ article hit the nail on the head and voiced my earliest thoughts when I heard the news on Friday. There are at least three ways of interpreting it. (1) CPQ genuinally did not think that in agreeing with an analyst's comment about a slow start to the quarter that it was issuing material news, because the strong sales for late February, the good indications for March and the relatively low cost of the January slowdown (1 cent) did not then and does not now justify a definitive warning. (2) CPQ's representative at the meeting made an error in revealing information that was not confirmed, and revealing it in a manner which made it vulnerable to misinterpretation. (3) CPQ deliberately misled shareholders and the market (a) in its expectations for growth in the first quarter and (b) the actual rate of growth.

To: hlpinout who wrote (50923)	3/2/1999 8:08:00 AM
From: QuentR	Read Replies (1) \| Respond to of 97611

DISCLOSURE LOSS $13 a share. All investors of Compaq deserve to know more information about the company through press releases. I still do not see a press release on the recent sales shortfall. Last March 6th a similar situation occurred and there was a press release on the subject. compaq.com Following the announcement the stock dropped about 3 points. From the February high to the March low the stock lost $10 a share. Earnings went from .42 a share to .01 a share. Now we see an earnings drop estimated to be .05 a share and the stock plummets $10 a share. If it is true that information was shared only with a select few, you can see the disaster that resulted in stock prices. This select few started a panic selling that has dropped the price of the stock about $10 a share over the last three days. We still deserve a press release explaining the situation. Compaq is consistently under evaluated. By many projections this stock should be no lower than $45 after bad news. The difference is the "Disclosure Loss" that is running about $13 a share right now. If this article is true that the CFO is clueless that what he said would have this impact, management needs to wake up. A carefully worded statement with rationale for the shortage and expectations for the future could have cut the drop in value to a couple of dollars a share. Most analysts do not even reduce earnings for the year, and if so only by a few cents. Investors and the market need more disclosure. This "Disclosure Loss" needs to be eliminated with more press releases from management disclosing an accurate financial position of the company.

To: hlpinout who wrote (50923)	3/2/1999 9:27:00 AM
From: Night Writer	Read Replies (2) \| Respond to of 97611

hlpinout, A Compaq spokesman said the company's chief financial officer commented on computer demand during the tour with investors only in response to a question from an investor about weakness in demand during the quarter. "We were agreeing with a comment made by an investor," a spokesman said. "At the time of the conversation, we did not believe that this was material [information]" Glad I don't have EM's job. Agreeing with a comment made by an investor is not an announcement of any type, much less an earnings warning. The investors and analysts have taken this piece of trivial information and blown it up. I say it is trivial because January is always soft. It is logical, normal, and not a big deal for January sales to be soft. In my mind, this presents a great buying opportunity at the hands of some panicked institutional investors who don't understand the sales cycle of the PC business. What a fine opportunity for investors with guts. I hope we bounce lower so I can buy 1,000 bargain shares today. NW