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Technology Stocks : Compaq
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To: Loki who wrote (21823)3/14/1998 6:12:00 PM
From: Dulane U. Ponder  Read Replies (2) of 97611
 
Loki, I used washing machines in my post because they had been mentioned in the previous post. TV's and computers are good parallels especially since the functions of both are becoming increasingly superimposed. Nonetheless, in the last 20 years tv's have been commoditized; one brand is just as good as another. I remember (before the "sonyfication of America") when there used to be serious debate about whether to buy an RCA or a Zenith. The issue was color quality. Now they're all the same; brand isn't important. The same fate is in the stars for pc's. CPQ really had no choice; an inflection point once reached cannot be ignored. CPQ chose to go with DEC. I think one little mentioned DEC asset is its respected "mind trust". In the future, a real "technology" company must have the R&D to produce real "technology". I'm just trying to talk in common-sense terms but I think CPQ really had to make some kind of move because they saw the writing on the wall. dulane
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