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To: puborectalis who wrote (25982)	3/2/1999 10:21:00 PM
From: kha vu	Respond to of 120523

WSJ: Heard On The Street-- Compaq is critized for How it Disclosed PC Troubles 03/02/99. Answering question to a visiting investor,on Thursday afternoon, CPQ CFO said he expects weakness in demand during the quarter. Credit Suisse First Boston analyst, led this group of visitors at CPQ Houston headquarter, left a voice message to client warning January weakness. Paine Webber analyst downgraded CPQ Thursday night after getting return call from CPQ. Other analysts do not get any official words from CPQ. CPQ defends its action as an off-the-cuff remark by the management. Besides the question of uneven flow of imformation, the core of the remark showing that there is a problem with the low end PC demand. "PC penetration in small business is reaching saturation", so CPQ and Gateway expect to sell sub-$1000 pc and services, peripherals, software and other add-ons...to consumers. But the sales slowdown already shown at HP and Dell. Again, we see the report of PC maker Micron warning the lower than expected results: revenues would be 6 to 9% below the results of its last quarter.