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

To: Loki who wrote (56930)	4/11/1999 11:47:00 AM
From: rupert1	Read Replies (3) \| Respond to of 97611

Loki: I am always reluctant to criticise management for short-term setbacks, if the real cause is market conditions. Two months ago, CPQ management was being praised for its vision and its relatively quick execution of the the DEC merger, sales were at an all-time high as was the share price. My investment in the company rested on the logical coherence of that vison, the company's record in coming from nothing to the position of No. 1 PC vendor and No. 2 computer company in next to no time. On that basis I have challenged critics to provide logic and coherence in their criticisms and to justify any statment which purported to be factual. On the whole, they have not made a good job of their criticisms. The CPQ pre-announcement - in its content and timing is a fact that I can deal with. It is indefensible. I was always uneasy about EP but given his achievements I was prepared to give him the benefit of the doubt. I recall again his TV interview when at the Landmark Hotel in London in early February, 1999 when he reiterated again how well things were going, and when challenged to state whether sales were good in 1Q he hesitated and said well things are always slow in 1Q but basically things were on track. That was one of the factors that caused me to invest heavily in the company. The problem of communication between the company and the investment community appears to derive mainly from its confusing accounting concepts, the inefficiencies in its bookeeping which continually yields surprises, and the method of presentation. Clearly the responsibility for this is with the CFO. The responsibility for his being in the job is that of the CEO. The company's strategy and vision continues to seem coherent. It still promises growth in assets and in share price, but it needs adroit leadership. This crisis offers the Board an opportunity to seize the initiative. There is enough ammunition in the box to turn this thing around with an AV announcement, a share buy back, new product announcements and the use of tax credits to get earnings up to or near 20 cents. I would guess that posters alone on this thread represent at least I million shares. Perhaps a joint letter from us to the Chairman of the Board might contribute to his sense of urgency?