Dan Niles Estimates Quotations

We remain negative on PCs and semis and believe there is still downside risk to estimates and stock prices.

We believe that Compaq also did a good job on the profitability front, which should enable operating margins to more than double from third-quarter levels ... this should lead to earnings-per-share at least several cents higher than the consensus First Call estimates of $0.16.

As a result, we believe forward EPS estimates at best will remain unchanged and most likely will need to be lowered.