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Technology Stocks : Compaq

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To: Jim McMannis who wrote (29294)7/16/1998 2:40:00 AM
From: FR1  Read Replies (1) of 97611
 
Jim, You are right about DELL mfg plants. Dragon Lady does have a point, though. The point is that DELL's game plan is to run a bare bones box making company with all the physical hand-holding and on-site service jobbed out.

The potential problem with that is that if there is a problem with the service vendor, DELL is powerless to do anything except cancel their contract (very painfully).

In short, if I have a CPQ problem I call CPQ and they send out a guy right away if necessary. If the guy screws up, CPQ can make it right because it is their guy. Call DELL and they can only say "Sorry, but it is not our problem - you work it out with the service vendor.".

This makes the word Guarentee difficult for DELL to say because they have no control over machine service.

I own both stocks and think DELL and CPQ will be back to their neck-and-neck % gains shortly. I like CPQ a little better for the long haul.
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