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

To: Elwood P. Dowd who wrote (58259)	4/16/1999 10:25:00 PM
From: Night Writer	Read Replies (1) \| Respond to of 97611

El, Depends on how shocked senior management was by the number. Two things possible. If they kept their heads, they gave the worst case pure earnings number with no tax adjustments. In this case,the real pure earnings number number should be slightly higher and then the tax benefits added on to that. Could be high teens, or low twenties. If they had a fear attack, they gave the earnings number plus included the tax benefits. In this case, the total number will be .15 to .17. Wall Street could then jump on them about the quality of the earnings. I hope they though about that. If EP and EM consulted with the B of D before releasing the number, no one can kick about it. If there was no consultation, exspect some changes. Mason would be my guess. I think the smart thing would be the first move. On the other hand, Wall Street could kick them on the honesty issue. They warn with .15 and report .20 with tax benefits. WS could say they knew about the tax benefits, why didn't they include them? A Catch 22 might be in progress. Of course, .20 would make Kumar a legend in his mind.<g> Bottom line after a week, the only thing anyone will remember will be the earnings number. I vote for the .20 with Tax benefits. NW