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

To: Elwood P. Dowd who wrote (57093)	4/12/1999 5:15:00 AM
From: rupert1	Respond to of 97611

April 12, 1999 -------------------------------------------------------------------------------- Compaq CEO Says 1Q PC Demand Was Less Than Expected Dow Jones Newswires NEW YORK -- Compaq Computer Corp. (CPQ) Chief Executive Eckhard Pfeiffer said the personal computer market wasn't as strong as expected in the first quarter, causing the company to miss Wall Street estimates. a brief statement to Dow Jones Sunday, Pfeiffer said Compaq relied on market research and discussions with customers to set its first-quarter projections. "Everyone expected (demand to be) a little stronger" at the outset of the quarter, he said. "The market as a whole was not as strong as originally expected," Pfeiffer said. "When that happens, pricing gets more intense and that also deducts from the top line." Late Friday, Compaq issued a profit warning that caught Wall Street analysts by surprise. The company said it would likely earn 15 cents a share in the March period on sales of $9.4 billion. That's 17 cents a share and about $300 million less than some estimates. Compaq will officially report results April 21. Analysts said the warning from the world's largest PC company could hurt shares of many computer-related stocks Monday at the beginning of trading. "It could get pretty ugly," said Louis Mazzucchelli, an analyst at Gerard Klauer Mattison, when contacted Friday evening. "The world is not coming to an end" Pfeiffer said, as if to calm Wall Street's fears. "We will continue with our market leadership." Tech stocks have been volatile over the last month due to concern that the PC business was more sluggish than usual in the first quarter. For chip maker Intel Corp. (INTC) and many top PC makers, first-quarter revenues tend to fall off from the fourth quarter to the first due to post-Christmas sluggishness in the retail market. Big corporations also tend to spend the bulk of their technology budgets at the end of the year. Only a day before Compaq's announced shortfall, Dell Computer Corp. (DELL) Chief Executive Michael Dell held an upbeat meeting with investors. The leader of Compaq's top rival repeated in the meeting that industry demand looked healthy. Pfeiffer said the shortfall wasn't due to the integration of Digital Equipment Corp., which Compaq acquired last year from over $9 billion, as some had suggested. "The integration with Digital ... has been highly effective," he said. "We are meeting every milestone." Pfeiffer wouldn't answer specific questions from a reporter, citing the company's "quiet period." He read from a brief prepared statement. - Christopher Grimes; 201-938-5253

To: Elwood P. Dowd who wrote (57093)	4/12/1999 5:20:00 AM
From: KW Wingman	Read Replies (2) \| Respond to of 97611

<<<THIS IS A MESS! As I've said on this board before, "SICK LEADERSHIP = SICK COMPANY = SICK STOCK!" El >>> It sounds to me like we have a few VERY SICK stockholders on this board too. I suggest you sell the stock if you think the company is no good (maybe you already are short and are a negative propaganda generator). I am holding my small positions in CPQ and Dell. The negative news may actually present a good buying opportunity soon. CPQ is not going away anytime soon, no reason to panic. Cheer up and have a nice sunny day, Wingman