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Technology Stocks : Compaq

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To: hpeace who wrote (5990)9/25/1997 9:49:00 AM
From: Kai-Uwe   of 97611
 
Steve:

Spot on - but how are they going to catch up when they pulled out of the largest volume market (FRG Consumer PC)???

Agree with the catch-up game statement.

Disagree with the 'build'statement - HP does not technically build any printers. They design a nice plastic casing (and, admittedly some of the controlling electronics) and market it well - however the engine is either EPSON, SEIKOSHA, CITIZEN, etc.

I agree that they engineer the best printers out of the components that are out there, and I agree that HP is a good engineering company. I would buy stock in them alone for their diversification/marketing expertise. But I would not bet on them being a hit in the PC market, even though I would love to see some good product from HP hit the market (Pavillion is a sexy unit, for example).

HPs weakness is that they are too slow to make a statement - they don't have the expertise to be a pioneer at the moment in the PC arena. They are literally catching up, which is good. But they have a long way if they want to reach no.1 - and they won't be there in 3 yrs.!

That's all

K.

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