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Technology Stocks : Compaq
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To: rupert1 who wrote (56012)4/8/1999 8:25:00 AM
From: Bazmataz  Read Replies (2) of 97611
 
For CPQ, (to me), unit sales matter less than revenue and profits. If CPQ is selling their very low-cost pc's at greater numbers, that's good - but unless they're making money, who's going to care? I think that some on this thread may be mistaking unit numbers and market share for more than it's worth. Maybe for the internets that's okay - their market share may mean more profitability in the future. But for a company like CPQ, that could be the kiss of death - they're killing their profits in order to take market share. The best goal for this would be to have more pricing power in the future with that market share, but who really thinks CPQ will have pricing power (in the positive direction, that is) at any point in the future ever? Personally, I don't.

Baz
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