P.M. BRIEFING : Compaq Stock Off 15 on Report
Compaq Computer Corp.’s stock plunged nearly 15% today after the company announced its fourth-quarter earnings will be below expectations.
Shortly before 11 a.m., Compaq was off $15.37 1/2 at $90.62 1/2 in heavy New York Stock Exchange trading. In the last year, the stock traded as high as $112.50 a share and dipped as low as $52.
A week ago, Compaq stock tumbled 8% after the computer maker disclosed it had uncovered two minor flaws in the i486 microprocessor made by Intel Corp. The chip will be the brains of a major new computer Compaq is introducing next week.
Chief Executive Rod Canion placed blame for the lackluster sales on a slowing growth rate in the American market, limited availability of new products and continued uncertainty about the new i486 chip.
