SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Compaq
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Eddie Kim who wrote (20086)3/6/1998 7:44:00 PM
From: KAD  Read Replies (4) of 97611
 
Eddie and others:

Cheer up, look for the silver lining in this cloud.

1. HP has substantially higher margin businesses to pre-announce, and Packard Bell is basically still a Quasi-private company.

2. My thoughts on this mess are that Compaq finally could not parlay this inventory from one quarter to the next and had to bite the bullet. That is good! In a sense. The air is out of the bag - the channel stuffing story was out there since the 4Q and it looks like it probably was true and it carried over. Maybe CPw felt they could ride it. Now that expectations have been lowered the bottom will be stabilized and the stock will move up from a base here (definitely > 20).

3. The last time time Compaq pre-announced was two years ago in the 1st Q and my guess is that they will probably overstate on the bad side so they can deliver from here on. Remember Mason was not even on board then and has not gone thru that experience with CPQ.

4. What about the DEC deal. This has to be something the Company can control and my take is that CPQ will probably break all records for mergers (if any exist). The Ex-Dec'ers - Mason, Rose etc. will deliver here!

5. To summarize my take is CPQ's problem is a 4Q carryover because CPq did not get their BTO in gear. Intel, Asia etc are all other issues. And the Channel we are talking about is the desk top Commercial only! A bread and butter channel but all others are excelling including retail!

6. This to me looks like the buying opportunity we saw in 1991 when CPQ was at 22 before 3 splits ( 3-1, 5-2 & 2-1)

Hang In There

KAD
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News