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

To: Racso who wrote (54329)	3/21/1999 3:57:00 PM
From: rupert1	Respond to of 97611

Racso: Thanks for the feedback on the Brazil currency. Your figures accord with those in the Barrons article I cited earlier. Message 8435887 It would be surprising if CPQ failed to hedge adequately - the Brazil currency was under threat for most of the last twelve months. Which does raise question about Mason's comments. I would assume that 4Q receivables still payable before the devaluation started, would be no greater than 30-60 days. That would not explain Mason's calculations. So we have to assume he was projecting losses into the whole of 1Q. I don't understand how this makes sense because surely he would have beefed up the hedging if it had been inadequate. However it is cut, I can't see the devaluation costing anything like the $200 million he allowed for. I note that CSFB used $40 million and that seems more likely. This raises questions about the extent of the "shortfall" in 1Q revenues on which analysts have based their reduction of earnings estimates.