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

To: Captain Jack who wrote (60195)	4/30/1999 5:00:00 PM
From: rupert1	Respond to of 97611

April 30, 1999 -------------------------------------------------------------------------------- Merrill Analyst's Outlook Gives Lift to Hewlett-Packard By NICK WINGFIELD THE WALL STREET JOURNAL INTERACTIVE EDITION SAN FRANCISCO -- Shares of Hewlett-Packard edged up Friday after a Merrill Lynch & Co. analyst said the computer and printer giant will exceed Wall Street estimates in the second quarter, an encouraging sign for a company that's seen revenue growth slow to a crawl in recent quarters. In afternoon trading, shares of the Palo Alto, Calif., company were up 1 7/16 to 79 13/16 on the New York Stock Exchange. Meanwhile, the Nasdaq Composite Index was down 0.60 to 2527.80 and Morgan Stanley's high-tech 35 index was up 1 to 1019.20. The Dow Jones Internet Index gained 0.80 to 277.10. Merrill analyst Steven Milunovich bumped up his second-quarter earnings estimates for H-P by four cents a share to 83 cents a share. The mean estimate of 20 analysts tracked by First Call remained at 79 cents a share. Mr. Milunovich predicted revenue growth of 3% over the same quarter in 1998, bringing it to $12.4 billion. That's a modest improvement for a company that posted a disappointing 1% in revenue growth in the first quarter. "We think H-P can beat the Street's estimate with momentum improving in the second half," Mr. Milunovich wrote in a research note. Mr. Milunovich pointed to several factors for the improvements in revenue and profitability. H-P's printer business, he wrote, should be a "solid contributor" to both areas in the quarter. He predicted revenue growth in H-P's personal systems group, which includes its PC business, would be 7% compared with 4% in the first quarter. Mr. Milunovich also said H-P may benefit from difficulties at Compaq Computer, a close competitor in the PC business, that recently ejected its chief executive officer over turmoil in its business. "H-P still has much to prove, but improved earnings and an Internet strategy should move the stock higher," Mr. Milunovich said. H-P is in the midst of a massive reorganization effort that will see the company spin off its $7.6 billion-a-year test and measurement equipment operations into a separate company. Once the spinoff is complete, H-P will consist of printer, PC and server operations. Executives hope the move will help energize the company's work force and allow it to remain focused on related businesses. "I view it as a very strong company with compelling technology," said Andrew Neff, an analyst at Bear Stearns. "The key is to execute on their plan."

To: Captain Jack who wrote (60195)	4/30/1999 5:08:00 PM
From: Kenya AA	Respond to of 97611

CJ: Right and the perception of CPQ is in the potty now. For once, perception and reality are one and the same. K

To: Captain Jack who wrote (60195)	4/30/1999 5:13:00 PM
From: rupert1	Read Replies (3) \| Respond to of 97611

I think the worst thing that Rosen could do is act like a Cramer, and play the day to day, hour to hour perception game. This is about serious wealth creation not about journalistic gossip. Rosen acted absolutely correctly to refuse guidance until he had a firm grasp. As he said, he never wants COMPAQ to warn again. I thought that he could take up 4-6 weeks before giving detailed briefing to analysts and financial journalists, but I think he will do it in 2-3 weeks. Therefore, we might see a CC next week or the week after. I think it will be upbeat but conservative. In my last post I listed the main fears. But there are potential positive surprises. 1. A quick announcement of a new CEO. 2. Strong positive guidance for the 2Q and the year.