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

To: Walcalla who wrote (58487)	4/18/1999 9:05:00 PM
From: rudedog	Read Replies (2) \| Respond to of 97611

Interesting but complete B.S. since it was the BOD who reviewed the numbers and forced the April 9th announcement. The lawsuits directed at CPQ are not affected at all by these resignations. The corporation is responsible for the actions of its officers for better or for worse. The officers, on the other hand, are protected from claims against them when acting in their corporate capacity except in rare circumstances. So that part of the assertion is just not the way the law or the world works either. So I would take that article with a dose of salt - their two main arguments are incorrect prima fascia.

To: Walcalla who wrote (58487)	4/18/1999 9:13:00 PM
From: rupert1	Read Replies (1) \| Respond to of 97611

Walcalla: As the financials came together - the numbers reflected financial results that were worse than Compaq just reported on April 9. The resignations by the Mason and Pfeiffer were apparently made to cut-off lawsuits directly at the Company. So far, this evening we have been told that the cause of the resignation was (a) channel stuffing (b) DEC integration (c) slowness in spinning-off AV (d) undisclosed funny accounting or less than 15 cents earnings. This does not seem to gel with Rosen's statement a couple of hours ago. Would he start the new era with a lie or a cover up? Here is an excerpt from what he said: "Boards don't do these things precipitously," Rosen said in an interview with Dow Jones Sunday evening......... Compaq angered many Wall Street analysts April 9 with a surprising late-Friday afternoon warning that first-quarter earnings wouldn't live up to expectations. The following Monday, Compaq shares fell 22%, and the company acknowledged that it had to work to rebuild credibility with investors. Rosen said the first-quarter problem was "a factor" in dismissing Pfeiffer, but not the only one. "Unfortunately, we had a disappointing first quarter last year and three years ago," Rosen said. "It was not an isolated event." He said he couldn't say right now how the first-quarter problems could have been handled better. "That's something we're going to look into," Rosen said. "We don't have all the details of the quarter, but certainly I'm disappointed by the reaction to it."