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Compaq: Pc Overload


In Business This Week: CLOSING BELL

COMPAQ: PC OVERLOAD

Is Compaq suffering from indigestion? Shares of the industry darling stalled this year as unsold PCs piled up in dealer warehouses. Now, Wall Street expects the overhang to hurt Compaq profit margins and sales for the quarter ending Apr. 4. Compaq shares are down 19% over the past month. Meanwhile, shares of direct sellers, which don't worry about dealer inventory, have soared: Dell has climbed 29%, and even Apple, which plans to sell direct to consumers, is up 34%.EDITED BY PAT WECHSLERReturn to top

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