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

To: Charles Tutt who wrote (58553)	4/19/1999 12:14:00 AM
From: JGibbs	Respond to of 97611

Just tuned in and EP has resigned with the CFO.....take the money and run....figures, should have sold at 50.....guess I'm not inside, huh

To: Charles Tutt who wrote (58553)	4/19/1999 12:48:00 AM
From: Obewon	Read Replies (1) \| Respond to of 97611

One thought on how the market (NOT the Street) will react tomorrow. The various money managers who control the majority of the institutional shares don't KNOW Rosen and aren't going to be very reassured with his taking over. (Please remember that most money managers and analysts were in COLLEGE when last Rosen had to step into the breach.) They MAY be relieved that Pheiffer and Mason are gone but the uncertainty level has just increased tremedously for the company. Rosen is NOT going to remain CEO so he most likely will not be willing commit to any long-range strategies because it would tie the hands of anyone eventually hired for the position. Additionally, every strategy announced by the company (including the spin-off of Alta Vista) in the past six months is now thrown into a limbo as the new CEO may (WILL!) have a different vision of the company. While it is clear that the present strategy is not working, we are stuck with it for approximately 3-6 more months while a search is conducted. Money managers are NOT going to be willing to let investor money stay idle in CPQ in this era of required short-term quarterly results. They will dump and look to investments showing as much potential as CPQ without the huge risks and uncertainty. The Street will put the best face on this because they are TRULY RELIEVED that CPQ is getting new management, but I expect that most major investment houses will be forced downgrade the company by midweek as a result of this move (especially the ones who failed to last week on the hope that it was just industry weakness rather than a specific CPQ problem). Glad I took my lumps last week (after seeing an eight bagger drop to a four bagger - I never said CPQ hadn't been a good investment in the PAST). CPQ is dead (or worse) money until at least two quarters AFTER a new CEO is announced. Good luck to all. Obewon