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Technology Stocks : Compaq
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To: Todd Kernke who wrote (20127)3/6/1998 9:20:00 PM
From: Jack T. Pearson  Read Replies (1) of 97611
 
Compaq won't cut prices on it's latest equipment. The stuff in Compaq's inventory is or is rapidly becoming obsolete. Dell doesn't have obsolete equipment that competes directly with Compaq's obsolete equipment. So Dell won't have to cut prices. Any way you look at it, a company that maintains high inventory in an industry where components rapidly drop in price and increase in performance is in big trouble. In spite of the hype, Compaq's BTO hasn't worked.
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