victor,
Yes, but we didn't partake in the run up the others did prior
to this (as we know!) and not being a holder of say, MSFT or
Dell, I tend to get a bit exasperated when that happens.
From the Zoo.
by: ShortnHung (56/F/San Jose, CA)
53399 of 53463
CPQ: CREATING COMPAQ.COM AND FOCUSING ON SALES AND
SERVICES ON THE INTERNET; EXTENDING PC LEADERSHIP TO
INTERNET LEADERSHIP; EXPECT MORE ON UNIX SIDE; MAINTAIN
STRONG BUY RATING AND $60 PRICE TARGET
Synopsis:
The following synopsis is qualified in its entirety by the more detailed information
contained in the full research report, including the discussion of certain risks
associated with an investment in this security contained in "Investment Risks."
Research dated prior to September 1, 1998 was prepared by an entity that was
acquired by BancBoston Robertson Stephens Inc.
Compaq last Friday announced the creation of its new business unit focused on
sales and services via the Internet as a further step to improve its direct business.
By creating Compaq.com, Compaq is taking one more step to show that it is
focusing on improving its direct business. In the long run, however, we believe it is
Compaq's intention to expand its PC market leadership to Internet leadership.
We believe that Compaq's new focus on Internet will likely drive PC demand in
the long term. With Internet Search capabilities programmed into computer
hardware at the chip level, surfing the Net would be as easy as hitting a key and
faster than computers without the embedded search capabilities. With new
focuses, we believe that Compaq and a number of hardware companies will be
able to further the advancement of Internet and e-commerce-related technologies
in the long run.
Consumer sales continue to be robust and UNIX businesses are growing again due
to the successful integration of the Digital business. Compaq achieved an all-time
record in its worldwide market leadership in 1998 and grew market share to
15.4% from 14.4% y/y. We believe that its consumer business were strong in Q4
with sales out of retail up about 100% y/y, while sales into the channel only grew
60%.
We reiterate our Strong Buy rating and $60 price target with multiple expansion
expected.
Posted: Feb 4 1999 8:39AM EST as a reply to: Msg 53394 by sm1998a
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