posted 06-30-2000 02:09 PM         

"On Friday, a number of brokerages, including Merrill Lynch, SG Cowen and Donaldson, Lufkin & Jenrette, came to Compaq’s defense, saying that the company’s channel inventories remain in good shape."

posted 06-30-2000 09:13 AM         

But finally, a company took a stand. After the bell, the Compaq chief said that the problem is not too many inventories, but not enough! In fact, they are having trouble filling orders (in a positive way), and this analyst doesn't know a thing about their company.

posted 04-25-2000 07:23 PM         

Compaq (CPQ): $0.16, $0.16, $0.16

posted 02-26-2000 02:59 PM         

I put together a valuation spreadsheet on Compaq Computer using data from Value Line.

Some interesting observations include:
1. Revenue and cash flow growth remain flat but if they are successful in cutting expenses and setting more direct distribution channels they may meet earnings projections which will show a substantial growth improvement to 100%+
2. Long term debt is nil and current financial position is decent.
3. Inventory and receivable management are O.K. at 20 days and 62 days outstanding respectively, but they have a long way to go to match Dell.
4. At 16.7%, return on equity is O.K. but again doesn't come close to Dell.
5. Most recent price appears to take recent troubles into account. It is less than most of the intrinsic value estimates. In fact, it is far less than what the average dividend yield would support.
6. If Compaq can get its act together and achieve 25% annual earnings growth over the next five years, the projected Win/Lose ratio is very attractive at 11.59 to 1.