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To: Windseye who wrote (61892)5/21/1999 7:36:00 PM
From: Piotr Koziol
   of 97611
Doug, I guess the idea behind Max-Pain is if there is to be
some manipulation in the price of the underlying security, then
the option WRITERS are the ones that maximize their profit by
driving the price to a level where MOST of the option BUYERS
will loose money...

Which means those that buy options, counting on
volatility in either direction are "gamblers" and the ones
that drive the stock price to their mean option sell level are the
ones that must be behind the market "manipulation"
Another term for these guys is "smart money"...

Let enjoy the contest in a month :^)


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To: Elwood P. Dowd who wrote (61896)5/21/1999 8:17:00 PM
From: Stephen
   of 97611
I've seen the same myself in the banking world. The politicians spend all their time ensuring the boss thinks they are indespensible, their management abilities being pointed solely towards self-promotion and segregation from others. The good news for Compaq is that whilst a lot of good people are lost, and the head honcho departs, the a**hole who created the mess is living on borrowed time. Gutsch will either depart to rejoin Pfeiffer when Pfeiffer gets another position (if thats what he does), or he will be cold shouldered till he finds it unbearable to be so powerless that he will negotiate a big golden handshake (maybe above the one already on paper) and disappear.

Till that management change is made, the situation is going to be quite tense .... and bringing good people on board maybe difficult. I give Gutsch 6 months max ......

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To: Elwood P. Dowd who wrote (61896)5/21/1999 8:21:00 PM
From: PCSS
   of 97611

This is just the kind of thing that Rosen WON'T stand for nor tolerate.

'Should' is be true about Gutsch ... he's gone and gone FAST now that the story has visibly surfaced.

I'm somewhat surprised that Rosen hasn't taken steps against Gutsch already.


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To: hlpinout who wrote (46406)5/21/1999 8:29:00 PM
From: hlpinout
   of 97611
Compaq Executive Turmoil Traced to Pfeiffer's Inner Circle

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To: hlpinout who wrote (46406)5/21/1999 8:31:00 PM
From: hlpinout
   of 97611
Compaq's Revenue/ Employee Growth (Bar Graphs)

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To: hlpinout who wrote (46406)5/21/1999 8:35:00 PM
From: hlpinout
   of 97611
PC Market Share, Compaq Loses Ground (Comparison Graphs)

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To: hlpinout who wrote (46406)5/21/1999 8:36:00 PM
From: hlpinout
   of 97611
The RS deal?

Tandy plans high-speed Net for homes
By Jim Davis
Staff Writer, CNET NEWS.COM
May 21, 1999, 1:20 p.m. PT

Tandy Corporation is getting wired.

Tandy Corporation, which operates the Radio Shack chain of electronics stores, has
entered into an agreement to acquire Amerilink Corporation in a deal worth $75 million as
part of its strategy to wire U.S. homes for connectivity.

Amerilink is a 500-person operation that constructs, installs, and maintains cabling
systems for the transmission of video, voice, and data in homes throughout the U.S.
Tandy said the deal will accelerate the deployment of DSL and cable modem sales in
conjunction with Compaq computers, and other products such as digital satellite systems
from RCA.

Tandy said it will swap its stock for all of Amerilink's common stock in a tax-free
exchange. The deal is expected to close by August 1999 pending shareholder approval.

The acquisition is yet more evidence that companies are looking to build out their
businesses to serve a market where video, audio, computing and communications
technologies are converging into one digital stream.

Do you want to know more?
View story in The Big Picture
Go to Message Boards

The deal enables Tandy to not only install a fast Internet connection to consumers'
homes, but wire the inside of the homes to let digital televisions, cable set-top boxes,
computers, and handheld gadgets talk to each other as well as control household

"Radio Shack is striving to be the home connectivity store," said Kurt Scherf, an analyst
with Parks Associates, a Dallas-based company focused on home networking market
research. "What they are looking to do is become a retail kiosk for a lot of these
products" by installing broadband connections into 5,000 stores to demonstrate high speed
Internet access, then actually installing these hook-ups in homes, he said.

With the acquisition of Amerilink, Radio Shack may have
"thrown the gauntlet down in terms of what [competitors]
may be required to do to get these products into homes,"
Scherf said.

The in-home networking market, including data,
entertainment, and structure wiring, could reach $4.4 billion
by 2004, Scherf said.

Tandy already sells Compaq computers in its stores, which
are fitted at the factory with DSL modems, and recently
signed a deal to sell products from Thomson Consumer
Electronics, makers of the RCA and ProScan brand

RCA makes cable modems, satellite receivers that offer DirecTV service, digital
televisions, and plans to even make a portable audio gadget that plays music in the MP3
audio format.

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To: hlpinout who wrote (46406)5/21/1999 8:37:00 PM
From: hlpinout
   of 97611
Star, Compaq Cooperates in E-Commerce

Story Filed: Friday, May 21, 1999 11:39 AM EST

FUZHOU (May 21) XINHUA - Star Computer Co. Ltd of east China's Fujian Province and the U.S.
Compaq Co. inked a contract of 30 million US dollars on Thursday to jointly tap the electronic
commerce market.

Star is one of the leading computer companies in China, and its operational income of software and
integrated system business reached 410 million yuan last year, ranking fourth in the Chinese sector.

Senior officials of the two companies explained that they will set up an e-commerce joint-venture,
which is expected to go into operation starting on June 22.

The joint-venture, the first of its kind in China, will be involved in such activities as e-commerce service
and the development and localization of e-commmerce software.

Copyright © 1999, Xinhua News Agency, all rights reserved.

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To: hlpinout who wrote (46406)5/21/1999 8:47:00 PM
From: hlpinout
   of 97611
PC Makers Start Hunting for New Markets:
Spotlight (Correct)

Bloomberg News
May 21, 1999, 4:04 p.m. PT

PC Makers Start Hunting for New Markets: Spotlight (Correct)

(Corrects 4th paragraph to say Adams no longer works for
Berger Associates.)

San Francisco, May 21 (Bloomberg) -- For personal computer
makers, the machine that launched the technology revolution and
enriched hundreds of companies is looking played out.

With machines costing less than $1,000 flooding the market,
the biggest PC makers are heading for higher ground. Dell
Computer Corp., Compaq Computer Corp., and Intel Corp. -- the
company that makes the brains of most PCs -- are all taking steps
away from the PC business.

They're bracing for the day when the PC, like the television
before it, becomes a commodity product with profit margins of 10
percent or less -- half as much as today. Already, the only way
PC makers can boost sales and earnings is by swiping customers
from rivals.

''It's a bad business,'' said Patrick Adams, who had managed
$1.6 billion at Berger Associates in Denver as of May 7, and who
recently sold 500,000 Compaq shares. ''It's going to be real
tough for anyone to make money.''

To try and cushion any blow to earnings, Dell decided to
team with International Business Machines Corp. to get the parts
it needs to build high-powered computers and data-storage
devices. Compaq tried a different tack and bought Digital
Equipment Corp. to expand into the business of setting up and
maintaining big computer systems. Intel, the world's biggest
maker of PC microprocessors bought a maker of communications

Even Microsoft Corp.'s Bill Gates, who became the world's
richest man by making software for PCs, is looking beyond the
desktop machines and is developing software for servers that run
the Internet as well as hand-held electronic personal organizers.
He's also betting on cable television, and earlier this month
agreed to invest $5 billion in AT&T Corp., gaining the right to
install Microsoft software on set-top boxes that AT&T will use to
offer TV and Internet access.

Sales Slump

It's easy to see why the PC industry is nervous. PC makers'
sales fell 4.1 percent last year to $147.6 billion from $153.9
billion in 1997, mostly because of price cuts, according to
market researcher Dataquest in San Jose, California.

Things are so bad that IBM had a pretax loss of almost $1
billion in its personal computer business last year, prompting
Chief Executive Lou Gerstner to say that the ''PC era is over.''

The news on PCs has been better in the past few weeks. IBM
said PC sales rose 50 percent in the first quarter. And Apple
Computer Inc., maker of the iMac computer, said earnings rose a
better-than-expected 69 percent to $93 million in the March
quarter. Hewlett-Packard Co., said PC sales rose 36 percent in
the fiscal quarter ended in April, and that it made money on
those sales. A year earlier, it lost money on PCs.

Still Losing

Still, IBM had a pretax loss of $89 million on PCs in the
quarter, and analysts wonder how long Apple will be able to
charge premium prices for PCs aimed at first-time users just
because the plastic exterior is curved instead of angular and
comes in blue, green and other colors.

''Design and packaging are important, but so is price,''
said Walter Winnitzki, an analyst at Hambrecht & Quist, who rates
Apple ''market perform.'' ''Apple is exposed to the impact of
$500 computers.''

Computer makers have a spotty record of coping with market
changes. Most of the mainframe computer makers that flourished in
the early 1970s -- NCR Corp., Burroughs Corp., Sperry Corp. and
Control Data Corp. -- failed to adapt when minicomputers came

Companies that made minicomputers, midsize computers that
performed many of the functions of older mainframes, had a
pratfall of their own when the PC era arrived. Digital, a
minicomputer power in the 1980s, racked up almost $6 billion in
losses from 1991 to 1996.

The same fate may befall PC makers.

''History suggests that they will fail,'' said Fred Hickey,
editor of the High-Tech Strategist, who's been advising readers
to avoid shares of PC makers for many months.

Betting on Services

Several big PC makers have high hopes for services, which
can include anything from setting up computers to providing
Internet access. They hope to match IBM's record of 20 percent
annual revenue gains in the business.

It's a market with plenty of appeal. Dataquest expects
worldwide revenue for services to double to $800 billion in 2003
from $400 billion today, rising about 14 percent a year, compared
with 6.4 percent annually for computer hardware.

Another inviting market is data storage, and Compaq and
Dell, are pushing into the market for machines that warehouse
billions of bits of information. They hope to replicate the
success of EMC Corp., the industry leader and third-best
performing stock in the Standard & Poor's 500 in the past three
years, with a 10-fold gain. Dell was No. 1, with a 44-fold gain
in that stretch.


No company is more intent on transforming itself than
Compaq, the world's top PC maker, and the one with the most at

The Houston company started in 1982 by making clones of IBM
PCs. Twelve years later, it took over as No. 1 in the business.

Compaq took a big step beyond the PC market in 1997, when it
bought Tandem Computers Inc., a maker of high-performance
computers. Then last year, it bought Digital for $8.7 billion,
which had once challenged IBM with a full line of computers
ranging from mainframes to laptops.

So far, those investments, particularly Digital, have been a
dud. Last month, Compaq reported a first-quarter profit of $281
million, far short of forecasts. Compaq's board pinned the blame
on its top executive, firing CEO Eckhard Pfeiffer.

The Digital piece of Compaq ''is not doing as well as
expected,'' said portfolio manager Duane Eatherly of Banc One
Investment Advisors, which owns 1 million shares of Compaq.

Even chipmaker Intel is backing away from its reliance on
the PC market, which accounts for 80 percent of its $26 billion
in annual sales.

Analyst Nathan Brookwood at Insight 64, a Saratoga,
California-based market research firm, expects the microprocessor
market to grow 12 percent a year -- half as much as Intel's
average annual sales growth of about 25 percent.

''They need new markets,'' Brookwood said.

In March, Intel made its biggest acquisition ever, paying
$2.11 billion for Level One Communications Inc., a maker of chips
used in computer networking equipment.

Internet Foray

In a bolder move, Intel plans to start hosting Web sites for
companies like Internet directory Excite Inc. Eventually, Intel
plans to have centers around the world, full of powerful
computers, maintaining Web sites 24 hours a day.

The chipmaker also created a unit to build new devices to
get on the Internet, such as electronic tablets and TV set-top
boxes, technology that may one day supplant the PC.

''This group is unencumbered by the PC legacies that the
rest of the company has to carry,'' Intel CEO Craig Barrett told
analysts at a meeting in New York last month.

Even Dell, the No. 1 direct seller of PCs, is branching
out, and with good reason. Dell's sales growth has been slowing
for two quarters now. Sales grew 41 percent in the quarter ended
April 30. Though impressive compared with rivals, that's down
from an average 54 percent in the previous eight quarters.

In March, Dell said it would buy $16 billion of computer
parts from IBM during the next seven years. Many of the
components will go into storage devices and high-powered servers.
Dell already makes some of those machines and wants to offer more
powerful machines that command even higher prices.

''Dell recognizes that its growth rate is slowing down, and
that it needs to diversify the product line,'' said U.S. Bancorp
Piper Jaffray analyst Ashok Kumar who rates Dell a ''buy.''

Companies that lack a plan for dealing with falling PC
prices get punished.

Shares of Micron Electronics Inc., a Nampa, Idaho, PC maker
that sells directly to consumers, have fallen 26 percent this
year. The company has reported $219 million in losses during the
past four quarters.

Advanced Micro Devices Inc. shares have tumbled as well,
dropping 29 percent this year, after the chipmaker reported a
$128 million first-quarter loss. Unlike Intel, Sunnyvale,
California-based AMD doesn't make chips for higher-powered
computers, depending solely on the PC market.

These days, counting on the PC may be an indulgence few high-
tech companies can afford.

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To: Piotr Koziol who wrote (61891)5/21/1999 8:58:00 PM
From: tonyt
   of 97611
>Wonder where the Max-Pain point is for June expiration...

Based on the open interest, its $25

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