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

To: rupert1 who wrote (61530)	5/18/1999 7:53:00 AM
From: tonyt	Respond to of 97611

IBM, Compaq gain on H-P's profits Fed rate meeting keeps cap on pre-open trading By Tomi Kilgore, CBS MarketWatch Last Update: 7:43 AM ET May 18, 1999 NewsWatch NEW YORK (CBS.MW) -- PC shares are picking up in thin pre-open trading Tuesday after Hewlett-Packard's stronger-than-expected earnings, London market makers said. IBM (IBM: news, msgs) rose 1 to 238 1/2 and Compaq (CPQ: news, msgs) tacked on 1/4 to 26 1/4, according to Madoff Investment Securities. Dell (DELL: news, msgs) was unchanged after an earlier gain. "The market's gotten over the shock" of the surprising gain in U.S. April CPI. Nonetheless, trading was unusually quiet ahead of the Federal Reserve's rate policy-setting committee meeting this afternoon. H-P (HWP: news, msgs) however was off 1/2 to 88 1/4. The fiscal second-quarter profits report from the No. 2 computer maker late Monday lifted some concerns of slowing revenue in the personal computer market. Profits grew 34 percent due to strong PC and printer sales. See full story. Dell Computer Corp. is slated to release its earnings after the close on Tuesday. Analysts polled by First Call are expecting profits of 16 cents per share. Dell traded up 3/8 to 43 5/8 in pre-open trade, said traders at S.G. Cowen. Intel (INTC: news, msgs) rose 1/2 to 59 15/16. The chip maker Monday slashed prices on existing Pentium III chips as it launched its most powerful Pentium III yet, one that will allow faster Web access to audio, video and three-dimensional graphics, Reuters reported. Nets quiet No trades were reported in the Internets. Search engine Lycos Inc (LCOS: news, msgs) is expected to also post earnings Tuesday. Estimates are for the company to announce losses of 3 cents per share. Amazon.com (AMZN: news, msgs) has purchased a 35 percent stake in HomeGrocer.com for $42.5 million, the Wall Street Journal reported. AMAT results due Among others to announce results Tuesday: Applied Materials (AMAT: news, msgs). First Call consensus estimate for the semiconductor equipment maker is 26 cents per share; Network Appliance (NTAP: news, msgs) is 13 cents per share; and, Computer Associates (CA: news, msgs) is 82 cents per share. Tomi Kilgore is an online reporter for CBS MarketWatch.

To: rupert1 who wrote (61530)	5/18/1999 8:23:00 AM
From: DRRISK	Read Replies (1) \| Respond to of 97611

Vic, Did you see this? 5/17/99 Computer Reseller News 127 1999 WL 2102703 Computer Reseller News Copyright 1999 CMP Publications Inc. Monday, May 17, 1999 842 Systems & Peripherals PC arena still packs a punch -- Worldwide industry shipments hit 25 million units for first quarter of 1999 Jennifer Hagendorf San Jose, Calif. - Compaq Computer Corp. topped strong worldwide PC shipments but lost market share for the first quarter of 1999, according to a recent research report. Worldwide industry shipments for the quarter reached 25 million units, up from 21.3 million for the same quarter a year ago, according to preliminary results from Dataquest, a San Jose-based market-research firm. The industry growth rate topped 17 percent. Strong consumer sales, especially in Europe, fueled overall industry growth while corporate sales remained stable, said David Stremba, principal analyst for Dataquest's Personal Computers Worldwide Program. "The commercial side is dealing with Y2K issues," said Stremba. Houston-based Compaq topped the list with 3.4 million units shipped, up from 3 million the previous year, but saw market share dip to 13.4 percent, down from 14.3 percent. Compaq's 9.9 percent growth rate pales in comparison to No. 2 Dell Computer Corp., which saw growth of 49.1 percent. "Compaq is in a precarious situation because they don't have proven leadership at the top," said Stremba. At least two more months will pass before Compaq finds an appropriate leader, and a real turnaround in the company's performance will not be seen until the end of 1999 or early 2000, Stremba said. Confusion in the channel over Compaq's move toward a hybrid distribution model also slowed the company's growth, he said. Compaq's poor performance rate took some industry watchers by surprise, said Stremba. Dell, Round Rock, Texas, shipped 2.3 million units, up from 1.5 million the previous year. Its market share grew to 9.2 percent, up from 7.2 percent. "Dell was able to capitalize on some the missteps made by Compaq in the marketplace," said Stremba. Because Dell's direct model gives it total control over its distribution, it is easier for the company to meet unit-shipment goals, said Stremba. DrRisk