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Compaq Says Computer Inventory at Healthy Level

PC maker

Compaq

(CPQ)

was rising in preopen trading after the company said it was comfortable with its third-quarter inventory levels.

One of the reasons stocks of PC makers have declined recently is due to perceived softening in PC demand.

Dell

TheStreet Recommends

(DELL) - Get Report

, for example, fell recently after it said

revenues for the third-quarter will be lower than expected.

Inventory levels are crucial because computer products become outdated very quickly (unlike, say, a company that makes brooms or toilets, which haven't changed significantly since Chaucer was alive).

Compaq is expected to report its earnings results Oct. 24. Lately, shares were up 30 cents to $28 on 10,000 shares, making it the sixth-most actively traded stock on the

Instinet

electronic trading network.