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

To: dper who wrote (57128)	4/12/1999 7:51:00 AM
From: rupert1	Respond to of 97611

dpr: I was not referring to the fact that it was Friday evening - contrary to a lot of criticism of that on this thread, I approve a Friday evening for all the reasons you gave. In addition, it gives the company a chance to assess reaction and do repair over the weekend. I also agree that the company is obliged to preannounce results like this, and it would be much worse if they did not. My criticism of the timing was that they must have had more than an inkling of the shortfall 1, 2 3 or 4 weeks ago. Yet they have consistently said through their IR department that they have not changed their guidance. Last week they were even using the phrase that "COMPAQ has never warned this late befor" - indicating to most reasonable people that the warning season had passed. People have bought shares on this belief that is why it is disgraceful.

To: dper who wrote (57128)	4/12/1999 7:58:00 AM
From: rupert1	Read Replies (3) \| Respond to of 97611

On the Yahoo Club Thread she_x has been reporting on her weekend soundings from stunned COMPAQ employees. There is speculation that the decision was made to "write-off" 1Q when it was realised that it was not going to meet expectations, on the theory that we might as well be hung for a sheep as for a lamb. Managers may have been told to pile as much of their costs into 1Q bringing them back from 2Q. There was even the suggestion that some of the heavy March sales have been pushed forward unto 2Q books, and that 2Q is looking good, so far. According to her soundings there is near universal support to dump Mason but still strong support for EP. As usual she_x reports this as gossip or rumour even though it comes from COMPAQ Houston employees.