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Technology Stocks : Compaq
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To: jim kelley who wrote (4036)7/14/1997 6:35:00 PM
From: Harry Landsiedel   of 97611
 
Jim. Re: Low Cost Producer. The key is revenue or profit per employee. Based on the latest Value Line the following profit per employee for selected companies. (I used '96 profits)

CPQ: $70
IBM: $24.00
HWP: $24.00
DELL: $63.21
GATE: $27.00

Since CPQ is moving into the workstation market, SUN's #'s might be of interest. For '96, they are: $30.

One of the key things for CPQ is to control the number of employees they will add when they add more service.

Hope this helps.

HL
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