Feargreed.
your comments still reak of emotion and not much logic.
I will answer your question directly
NO!!!! I do not think that CPQ is a good value for three very simple reasons
1) They are fundmentally disadvantged with a business model that was created ten years ago and has not changed. until they shed the resellers channel they will never get to the direct marketers effeceincy and thus continue to lose market share to them
2) They have bitten off way more than they can chew and do not have the mgmt bandwidth to deliver on ODM promises, integrate tandem, digest DEC, and fend off the threat from direct mktrs. This lack of mgmt bandwidth has already lead to very questionable decisions. (stuffing the channel with MMX in Q4 for example) that fancy bit of footwork, from CPQ mgmt will help support the lofty goal of ZERO profit in Q1 for all you loyal CPQ shareholders, enjoy!!!
3) According to IDC, dell is now the number two provider of servers to corp america and I think I heard their CFO state on their analysts conf call that their server business is growing at like 200%/year. why don't you play with a few proforma CPQ income statements and imagine a world where either the margins on their server business are cut in half or their share in that mkt is cut in half. As CPQ derives arounf 60% of their profits from the server mkt this would be a very painful thing for CPQ and their shareholders
skip the emotion dude and post some logic. Yes CPQ is a OK company with very mediocre mgmt and a GREAT brand name (perhaps the best brand) But brand alone will not suffice over the long term, and the picture for CPQ is ugly and gets uglier each and every day
sell now, take your profits, and rest easy
Jason |
