Compaq Disputes Analyst Report of High Inventories

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Compaq Computer

(CPQ)

Tuesday disputed a

Salomon Smith Barney

analyst's report that said its retail inventory levels were relatively high.

"We are comfortable with our channel inventory levels and are seeing supply constraints ease during the quarter," said Peter Blackmore, executive vice president of sales and services for the Houston-based computer maker.

His remarks came in response to Salomon's report that Thanksgiving weekend sales and promotional activity for personal computers were weak, singling out Compaq as having relatively high U.S. retail inventories.

Shares of Compaq were down all day, recently off $1.81, or 7.3%, to $23 in

New York Stock Exchange

composite trading. Other PC makers were off sharply as well. The

Box Maker Index

(BMX)

was down 2.1%.