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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Elwood P. Dowd who wrote (64579)	7/2/1999 11:21:00 PM
From: Nouveau_Riche	Respond to of 97611

Thank you.

To: Elwood P. Dowd who wrote (64579)	7/3/1999 12:42:00 AM
From: Nouveau_Riche	Respond to of 97611

El and Thread: Recent news, regarding European online sales, leads me to speculate that Compaq's internet sales strategy is being tested in Europe and will eventually appear in the US. I suspect that they will use the Web to sell computers directly to the end-user by forwarding the hardware orders to their DAP partners by geography while siphoning service/internet/software/etc. sales to themselves. This will also allow them to own the customer. I see no value in owning the manufacturing plants other than the possibility that a DAP partner may choose to defect. This is highly unlikely since the DAP relationship is a volume guarantee. Eventually, if necessary, Compaq could make equity investments or outright buyouts to maintain control. I also think that this strategy will begin to unfold, within the US, in the next few months. And will be viewed as an effective strategy to compete with Dell and Gateway in the PC segment of their large computer business. Thoughts and comments appreciated.