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.

Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme/No Pennies -- Ignore unavailable to you. Want to Upgrade?

To: Danny Song who wrote (67564)	4/10/1999 4:20:00 PM
From: michael liu	Read Replies (1) \| Respond to of 119973

Check CHRZ, you will see huge upside spike very soon. I am not talking about its low P/E , huge cash reserve, and buy back. I'm strictly talking about its buildup momentum. Check yahoo messages site. Michael

To: Danny Song who wrote (67564)	4/10/1999 5:00:00 PM
From: chass1	Respond to of 119973

DANNY SONG compaq's outlook not good riday April 9 7:58 PM ET Compaq Sees Results Shortfall By Eric Auchard NEW YORK (Reuters) - Compaq Computer Corp. (NYSE:CPQ - news), the world's No. 1 personal computer maker, Friday confirmed investor fears by warning that it expected its first-quarter profits to be less than half of what Wall Street had forecast. In a terse statement released late Friday, the Houston-based company estimated revenues for the quarter ended March 31 at $9.4 billion, resulting in earnings per share of about 15 cents. The forecast fell far below the consensus estimate of 31 cents a share among Wall Street analysts, according to a recent First Call Inc. survey of brokerage estimates. By comparison, Compaq eked out a profit of just 1 cent in the year-ago first quarter as it worked off a glut of inventory. The announcement, which came after the close of regular session stock market trading Friday, triggered an after-hours sell-off in Compaq shares. It also knocked down the share prices of rival PC makers and key suppliers of computer chips and software. Analysts said the shortfall -- which Compaq officials first telegraphed as a possibility in late February -- is likely to reverberate through technology stocks Monday as investors take measure of the impact on the industry. ''The quarter's shortfall reflects lower-than-anticipated market demand and increased competitive pricing in the commercial PC sector,'' Chief Financial Officer Earl Mason said in the statement. Mason's remark echoed comments he had made to a group of investors in late February when he signaled that commercial sales of Compaq PCs, especially to small and medium-sized businesses, were weak in the first six weeks of this year. ''While market conditions will continue to be competitive, we fully intend to expand our business and grow market share profitably in 1999,'' added Eckhard Pfeiffer, president and chief executive, also in the statement. ''The company will continue its aggressive drive of reduction of cost and operating expenses in the face of a very competitive market,'' he said. Beyond the immediate crisis, Compaq has been struggling to digest last year's $8.4 billion acquisition of Digital Equipment Corp., a business computers and consulting services supplier, by combining operations and cutting costs. A Compaq spokesman declined to comment further. The company said the forecast was preliminary and that final results for the first quarter would be reported on April 21. The first-quarter shortfall repeats what is in danger of becoming an annual pattern for Compaq. While fourth-quarter results are fueled by strong end-of-year shipments to corporate and retail accounts, first-quarter results often shiver through a seasonal slowdown as distributors dump inventory unsold in the previous quarter. This year, further complications cropped up after Compaq introduced late last year its new line of Prosignia commercial PCs targeted at small and mid-sized businesses. In a break with Compaq's historic reliance on computer wholesalers and distributors, the company allowed customers to contact Compaq directly via the phone and Internet to purchase the new machines, in effect undercutting its distributors. While analysts see the new sales strategy as necessary for Compaq to compete with faster-growing direct PC distributors like Dell Computer Corp. (Nasdaq:DELL - news) and Gateway Inc., many believe the immediate impact has been to antagonize Compaq distributors, causing sales to suffer. The earnings warning is expected to renew debate on Wall Street over whether the nosedive in Compaq results reflect a general weakening of demand among PC makers generally or whether Compaq alone is to blame for its weak sales. ''This is going to be a tough tough thing for tech stocks but keep in mind that in some ways Compaq and Oracle for quite a while have been in a world of their own,'' said Hugh Johnson, chief investment officer of First Albany Corp. ''You've seen solid underperformance from Compaq on many days when IBM, Dell, Cisco and Microsoft have been strong.... The initial reaction will be negative for the tech group but I think the market will quickly sort out the group,'' he noted. Some institutional investors wasted no time dumping stocks of leading technology companies late Friday. Compaq stock plunged nearly $5 in after hours trading late Friday to $26, reversing a gain during the regular trading session on the New York Stock Exchange, where it closed at $30.94, up $1.31 on the day, ahead of the disappointing news. Intel Corp. (Nasdaq:INTC - news), the principal supplier of computer chips that form the brains of Compaq PCs, fell more than $4 to $126.25 from a close of $130.81. Software maker Microsoft Corp. (Nasdaq:MSFT - news) slipped to $92.75 from $94.25. Closing prices were for regular session trading on the Nasdaq stock market. Dell dropped to $40.125 against its close of $43.54 in Nasdaq activity, and Gateway fell to $72.50 from its close of $74.69 in composite U.S. stock market trading. International Business Machines Corp. (NYSE:IBM - news) and Hewlett-Packard Co. (NYSE:HWP - news) -- Compaq's biggest rivals and major PC makers themselves -- did not trade in the after-hours session. Compaq stock remains well off the highs it set in late January above $50 when investor optimism peaked following better than expected fourth quarter results. Earlier Stories Compaq Sees 1st Qtr Profits Far Below Expectations (April 9)