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Technology Stocks : Compaq

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To: Maxer who wrote (26488)5/23/1998 12:38:00 PM
From: Pruguy  Read Replies (1) of 97611
 
Your argument is logical and simple to understand. I disagree though. The business really hasn't changed much at all. Here are a few of the similarities all along history of the pc business. 1) prices dropping, 2) increase in number of units sold, 3) increase in potential consumers, 4) increase in use of machine, 5) increase in power needed to run typical applications, 6increase in uses of the machines Compaq has flourished throughout the 90's because of these issues and I don't anticipate any of these issues changing for many years. I suspect the aforementioned pullbacks were during periods when there was doubt about the prosperity of the industry. These have ALL proven to be excellent entry points and I have never heard one argument that had any credibility to it that supports the theory that "this time is different" History tends to repeat itself and my felling is 12 months from now this will have looked like a no-brainer.
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