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Technology Stocks : Compaq

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To: Dr. David Gleitman who wrote (35450)10/29/1998 9:36:00 AM
From: steve kammerer  Read Replies (2) of 97611
 
If you want a qualitative reason to unload CPQ: I just saw figures at one on the sights NightWriter published. Shows CPQ with a forward looking PE of 78. That was a shocker to me. I only have 200 shares. I would think that everything has to go perfectly for CPQ's price to move forward at this level.
CPQ is now a large company with the concomitant overhead. Don't know how they can hold up vs extreme price reductions to come for Holiday season to compete with under $1,000 computers. If they follow price reductions, their profit margins should be even further eroded due to this overhead.
Given all that I guess I will still stick with CPQ. By the way to let you know of my great expertise, I bought 350 shares of TBR at prices from $135 to $114 over the past year, and managed to ride it all the way down to yesterday's close at $69 1/2.
Good luck,
stevek
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