This story in particular highlights how thickheaded some analysts continue to be. They make the Compaq uphill fight even harder.
"Bill Shope with ABN Amro notes that Dell's manufacturing and distribution model puts it in a better position than Compaq to grow more quickly as prices and demand remain low.
"In this scenario, we believe that Compaq's margins will come under pressure and should continue to be hurt until PC demand firms up and pricing eases," Shope wrote in a report. "
Well, DUH, how many more times do you have to be told that Compaq is so much more than a PC company. By the way the commercial PC's are doing just fine, thank you, and even Capellas acknowledged that the consumer PC was necessary to round out the overall business. Does anyone still doubt he'll return that part to profitability soon?
"Ashok Kumar with U.S. Bancorp Piper Jaffray says Compaq has lost momentum to Dell in the overall market.
"Its only savior now is the AlphaServer line," he said, referring to Compaq's most powerful line of computers. "
This statement is just too ignorant to consider when there are just so many things he's overlooking.
I say Good For Capellas, he's showing Wall Street that he's got the goods, and his company is not only delivering, but fleet enough to adjust to changing market conditions.
Russ |
