Compaq Message Board - Msg: 388588

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Technology Stocks : Compaq

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To: 8bits who wrote (368)	10/25/1996 2:49:00 PM
From: hpeace	of 97611

NIck..your observation of IBM in 1983 is correct. the dif between ibm then and cpq now is...IBM was convinced that status quo would keep them progressing...cpq on the other hand is performing out of buiness scenarios and spending $100mm to re-engineer systems that were already rated world class. Cpq is not thinking that things will stay the same. They have so much pressure applied on these re-eng projects that the work climate is do or die. They are not looking at the roses now they are focused on disaster that awaits them if changes don't happen and happen quick. They have been planning in these large charges over time so they don't mees up est on eps. they also have done a good job of talking down est. from analyst.

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