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Andrew, CPQ had a lot of help in taking the #1 spot in PCs. Packard Bell and IBM sat on their hands while CPQ was working hard to become #1 but thats in the past.But they deserve credit for doing that. My problem is not their prior success its what lies ahead. If you believe that CPQ will enjoy the same profit margin they have had then load up on the stock at $80 a share . Thay have had to lower prices in recent days and months to combat the onslault of competition in the server market and pc market and wall street in finally catching on that margins are getting hard to come by. CPQ is one of the better companys in the PC market but it remains to be seen if they can fight off the compitition from IBM,SUNW, Toshiba,SONY,Fujitsu,Hitachi, (all deep pocket behemaths) to protect their market share. So unless you know more than the CFO on how much profit the company will generate from that market I would'nt count on pass success when buying the stock at these levels. I think the jury is still out on the success of Waterwindows No Task , in fact I think they are not selling as many as MS projected. While CPQ is becomeing a gazillion dollar company what do you think the competition will do,sit on thier duff while CPQ take over the world ??? MP |
