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

To: rupert1 who wrote (54377)	3/22/1999 11:26:00 AM
From: QuentR	Read Replies (1) \| Respond to of 97611

Victor, we seem to be headed in that direction, $25. After the buyback everybody wins, when the stock recovers. I think we are all looking for a reason why COMPAQ stock is performing poorly. It just may not be problems with the company.

To: rupert1 who wrote (54377)	3/22/1999 12:37:00 PM
From: rudedog	Read Replies (2) \| Respond to of 97611

Victor - Given that CPQ has authorized enough to cover about $600M additional buyback, or 20M shares, they could get some shares back and also improve the price a little, although probably not much. This would, of course, not affect the P&L but would affect cash position. They could decide to wait until a little closer to innovate before buying, which would have the dual benefit of moving the transaction into 2Q, and also making it more likely that any effects would still be visible both at innovate and at the shareholders meeting a week later. This kind of activity is entirely legitimate. I am certain that they did nothing intentionally to depress share price for the reasons you state. I have no idea if this kind of thinking motivates them at the moment but it does not seem unreasonable.

To: rupert1 who wrote (54377)	3/22/1999 4:37:00 PM
From: fooledalot	Read Replies (1) \| Respond to of 97611

victor, >>And where would this decision be made - in the boardroom? Such a decision would open them to prosecution and imprisonment. True, a strategic move by the Board to tank the stock would lead to liability issues. But, once, the stock price has already dropped, they do not HAVE to be in any hurray, or go out of their way to DRIVE it back up. And, if in the meantime they just "so happen" to have a buying opportunity, so be it. Since the Q1 financials will be under scrutiny, they could wait until Q2 to spend the cash. Plus, publication of this very fact could become a catalyst to start the movement back up. FWIW f