Compaq Message Board - Msg: 5786474

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Compaq

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Eddie Kim who wrote (33094)	9/18/1998 2:19:00 PM
From: Sofa Kingdom	Read Replies (3) of 97611

I think you're missing a valuable element here. Compaq is a hardware company. In the past they have done some interesting things with software loading routines and insight manager (SNMP management), but they are still primarily into hardware and engineering of same. AV and the other search sites are all the rage right now, but isn't this a fair departure from CPQ's core business? I've been buying Compaq equipment for my employers for years and watched the company go from a one-trick-pony PC manufacturer to the verge of being a major player in the hardware market. I've never known them to be long on software skills (i.e. they still use Phar-lap code in their load routines), which means they would have to buy these skills. They could spend a lot of time and money 'learning' this business (or getting hammered by more experienced players). Near term it looks inviting, but they could just as easily use AV to parlay relationships with other companies (e.g. Pointcast or Oracle...). Hasn't the original development team for AV already flown the coop? If they don't overextend to develop this technology they could keep it as a tidy side interest or spin it off to fend for itself later. Hopefully, they will handle it better than Novell handled Wordperfect. I think the news on Tandem and DEC is where the read excitement lies. This is right in CPQ's sweet spot. CPQ has the raw materials to create a new server platform based on Alpha. NT was partially developed on the Alpha so you know the clean port of this code isn't years away. This means they have more cards to play than Dell and the others who can't sidestep Intel. They can leverage their service base with DEC and develop big iron with a proven OS in short time. With the Tandem underpinnings they could easily attack the AS/400 market or the banking market(NCR). If they can get NT and maybe Novell 5.0 on Alpha I think they have the makings of a big player. That's why I'm in CPQ, not AV. If they follow a strategy like this it won't develop in the next few quarters. This means it probably won't interest the day traders until something actually surfaces and the stock starts to move. I do anticipate that companies will be making fill order purchases of PC's before Y2K. This will probably make the stock jump a little when supplies get low and demand forces the prices up as the fateful day approaches. I'm not down on AV. I just don't see as much potential there. It could cost CPQ a lot to get driven from a market that is already loaded and moving fast. I see AV as more of some good support in an off suit rather than a trump card. If you know something different I'd love to hear about it.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next