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Technology Stocks : Compaq
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To: Dulane U. Ponder who wrote (22158)3/16/1998 11:21:00 PM
From: Jason W. France  Read Replies (2) of 97611
 
Dulane,

"Has it ever occurred to you that cpq may not want to be in the sub 1k market? That sub 1k is simply a means of clearing inventory on the type of machines they no longer wish to build? This is an entirely off the top-of-my-head notion but it has a certain cache (can't figure out how to compute the accent on the final "e")."

First of all CPQ has a totally separate brand for the consumer segment (presario) vs commercial (deskpro). (FYI their current inventory blunder is all deskpro!!)

Using sub 1K to clear out old presario's is one strategy, here is another.

Adopt Dell's mfg and distribution tecqniques and don;t get into the inventory mess in the first place!!!!!!!! sounds like this strategy would have saved CPQ shareholders about $500MM this qtr. ironically isnt that close to the dollar amount in options that were awarded to Eckhard and his exec staff last year!!!

Jason
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