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

To: FR1 who wrote (53350)	3/14/1999 5:22:00 PM
From: Elwood P. Dowd	Respond to of 97611

S&P Investment Outlook on Compaq by: Eburnea 60942 of 60944 I thought I would share this from the most recent analysis of Megan Graham-Hackett of S&P.... "Comparisons with the first half of 1998 will also be markedly improved, due to the depressed base in 1998, as CPQ worked off an inventory buildup. In addition, strong underlying demand seen in 1999 for personal computers, coupled with a more stabilized pricing environment, should fuel revenue growth. We also expect 1999 results to benefit as CPQ further optimizes its distribution model, and continues to focus on reducing overhead and redundancies. Furthermore, we anticipate that these savings will gain momentum as the synergies yielded by the combination with Digital further emerge, enabling EPS to grow to $1.75 in 1999......CPQ's strong revenue growth and asset management were impressive in 1997, and we believe this is a better reflection of the company's capabilities than the poor results of 1998.....We still believe that CPQ remains one of the best positioned companies to capitalize on the PC industry's 15% to 20% projected growth.....CPQ's strong track record of streamlining operations and effective execution should help the shares outperform the market." Sounds pretty good to me. Makes sense too, if you look at the actual operating company and avert your gaze for a few minutes away from the whims and whiles of Wall Street. Regards, Eburnea