Compaq Message Board - Msg: 2446584

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Technology Stocks : Compaq

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To: hpeace who wrote (6574)	10/14/1997 10:32:00 PM
From: PCSS	of 97611

CPQ margin erosion seems to be the concern of this SI thread not volume or revenue..... #1 ----- My pondering .... IF it is the case where CPQ margins have been eroding and will be reflected in Thursday's report THEN WHY WOULD CPQ ANNOUNCE ADDITIONAL PRICE REDUCTIONS TODAY ??? ..... #2 ----- Backgrounding ... Reductions in the past and today have usually caused initial knee-jerk negative stock price reactions (as it did today) AND caused "analysts" to immediately think about concerns for lower margins for the company. Generally, after further analysis and realizing that the company is using this to profitably enlarge market share AND NOT as a means of saving face or despiration the stock price rises beyond. #3 ----- My conclusion ... WE have little to worry about on Thursday .... it would be a monumental mistake/miscalculation for Mason to allow #1 to put a lot of fuel on the negatives of #2. CFOs that come from GE just don't make a mistake like this. Hope MY thought process is clear here ..

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