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Van Wang ... I remain unconvinced about the stock continuing south to 20. If Compaq management do their stuff like 3coms did, they can start a daily 'news' blitz campaign to hold the price up. Once it stabalises, sentiment could change. This may already be the strategy they have in mind. Then the recommendations come in and the direction changes ... Course Compaq then needs to deliver better than (now) expected qtr results, which I personally think they will as they are smart enough to know how to play the numbers game. I think that there are many investors out there who want a piece of this stock and are waiting for an entry point. If we don't see further deterioration ... who knows .. this could be it ! As you correctly state, the money inflows have to go somewhere and will rotate. As soon as they think Compaq could reasonably appreciate by year-end, they will jump on it as they can then leave it in their portfolio for next year (assuming no market hiccup)... all imho. Only time will tell !!!! In any event, I still like their business model strategy and what they are doing despite all the criticism. And long term I think they will do much better than Dell because of their diversification. Heck, with DEC they even get a piece of the internet, plus data storage etc, etc, etc .... . if it falls further I will buy more !! Good luck with your trading ... |
