HL,>>>For comparison purposes, cpq is looking at $1.75 (conservatively) for next year and a 25 P/E would give them a $44 price, a significant bump from $30. See what I mean? <<<
No. I mean, I don't see what you mean. I use to view Compaq the way I now view Dell. If I wanted to buy a good quality computer at a reasonable price without having to do rigorous research, I just bought Compaq. Now, I don't have the same perception about Compaq. When I'm buying a computer these days I usually buy Dell - but I would also look at Gateway and Micron Technology and I would skip over Compaq.
Besides, Compaq is now in the service business, or systems integration business, having to compete with IBM, Unysis, EDS, Arthur Anderson, and others.
But, what does Compaq do really well now? Do they have any technology that they have committment to?
In, any case, Intel has a focus, a commanding share of a very important industry going forward, and terrific R&D and so on. We are stuck with a low PE primarily because of the terrific work that Tom Kurlak has been doing to beat down Intel prices.
Let's face it, the relationship between the Tom Kurlak Industry and Intel is unique in the annals of business history. Can you name another person that has so relentlessly and successfully beating a company down as Kurlak has with Intel?
I can only think of one other example - Ralph Nader and General Motors - but that is an entirely different story.
IMO, once Kurlak losses his credibility - Intel PE will go up.
Regards,
Mary |
