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Continued plunge in Compaq's stock price tests the faith of most devoted investors

Article Abstract:

Compaq's stock continues to fall, but investors continue to buy Compaq shares hoping the company will recapture market leadership. The company announced 25 percent price cuts on some of its notebook computers and is undergoing a corporate reorganization. Compaq notebook computers are expected to be priced between $3,300 and $4,200, indicating that the company is responding to consumers' price concerns. The price cuts caused Compaq's stock to fall 1-1/4 to 26-5/8, with over 2,078,000 shares changing hands. The company has had a 32 percent growth rate since going public and is trading at eight times the 1992 earnings estimates. Kidder, Peabody analyst David R. Korus, has switched his almost year-old sell recommendation to a buy and suspects that Compaq stock will reach $50 by the end of 1992. Compaq's reorganization could result in expanded distribution.

Stock-exchange, Stock exchanges, Stock markets, column, Stock Market, Financial Stability

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Compaq's 4th-quarter profit rose 34%, capping comeback for computer maker

Article Abstract:

Compaq Computer Corp's profit increases 34 percent on record sales of $1.4 billion for 4th qtr 1992. Sales has increased 63 percent from $873 million. The computer maker's profit is recorded at $89 million or $1.10 per share for the year-earlier quarter. Observers expect Compaq's upcoming 1st qtr to be a good one because of the high number of unfilled orders. Overall, for 1992, Compaq has earned $213 million or $2.52 per share, compared to $1.49 per share or $131 million in 1991. Compaq has excelled since the replacement in 1992 of its chief Rod Canion because of its new focus on low-price products and aggressive mass-marketing. Compaq is also planning on expanding its income base beyond its hardware focus.

Profits, Outlook, Increase, Profit, Financial Report, Fourth Quarter

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