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

To: Loki who wrote (60405)	5/3/1999 8:44:00 PM
From: Andreas	Read Replies (1) \| Respond to of 97611

To Loki and Windseye. Sorry i didn't back sooner. I've been licking my wounds on some other fronts. Anyway - I show the following numbers for COGS for Q4 98 and Q1 99. ______________Q199_______%sales_____Q498_______%sales_____%change SALES_________9.42 bill.____100%____10.86 bill._____100%______-13.25% COGS _________7.10 bill._____75.37%___7.65 bill.______70.44%___- 7.2 % Based on these numbers the cogs increased from 70.44% to 75.37%. That's a 4.93% differential. Had cpq maintained the same cogs as a % of sales in Q1 as they had in Q4 total cogs would have been reduced by $464,406,000 or an amount greater than .16/shr. However, as i have stated before, the issue is what % was used by the analyst community for Q1 99 cogs? My info as to % utilized by analyst community comes from ML. I'd appreciate any comments. Do you show different numbers than me and if so what are they?

To: Loki who wrote (60405)	5/3/1999 9:26:00 PM
From: Mang Cheng	Read Replies (1) \| Respond to of 97611

Loki, basically I just focused on one number - that's the price-to-sales ratio. It dropped to 1.1 now for cpq. That's an extremely low ratio for a money-making company. Usually no company will have its PSR drop below one unless it's on the brink of an operating loss or if it's going into a very high debt/equity ratio. coms' psr dropped to 1.2 and voila it's back to 1.7 now. I have seen this so many times. Even amd has a psr of 1 right now. coms and cpq both have stash of cash and no long term debt. Mang