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Technology Stocks : Compaq
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To: Eddie Kim who wrote (26521)5/23/1998 10:20:00 PM
From: hitesh puri  Read Replies (1) of 97611
 
Eddie, you hit the nail on the head. There is no major price advantage that Dell has anymore. And yes, you do have to pay sales tax on Dell purchases which in my opinion disables the major reason for buying direct. In terms of bundled software you cannot beat Compaq because of its #1 position and hence leverage power it gets great deals for OEM software. It will take a little while but people wil see the light.
After 6-7 months of stumbling Compaq's BTO system is falling in place and Dell will have to seriously justify their high multiple. People are already questioning it now.

-hitesh
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