Compaq Computer Corp’s third quar-ter figures (see page five) are not quite as good as they appear on the surface: third quarter net rose 50%, a small slowing from 56.8% for the first six months – but the third quarter figure was boosted by a total pre-tax gain of $21.3m from writing up the value of Compaq’s 40% of Conner Peripherals Inc, and from the sale of $1m of Conner shares; the tax rate appears to be 35%, which implies that without the exceptional items, third quarter net profits rose by only about 26%, a figure that would satisfy most companies, especially with a string of new products on the way, includ-ing the 80486 EISA bus machine on November 6, but may nevertheless stall the rise in the share price.
