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

To: Windseye who wrote (67096)	8/29/1999 2:39:00 PM
From: Captain Jack	Respond to of 97611

Windy--- I have asked that question many times. No answers that make sense have been given yet!

To: Windseye who wrote (67096)	8/29/1999 3:41:00 PM
From: rudedog	Read Replies (1) \| Respond to of 97611

re: "How come if it's so good, and so obvious, CPQ didn't keep AV and do this itself?" Look at the revenue picture for a minute - CMGI can do the typical internet business model and show user growth, penetration etc. without concern for the cost picture. CPQ, on the other hand, has a hard time justifying an investment of hundreds of millions with no return. That amounts to maybe 3-4 cents EPS on a quarterly basis. I'm sure that CPQ has a plan for using those million customers, and that the benefits will be far greater than any eventual revenue that AV might make. I think CPQ did exactly the right thing - trade an asset that just hurt the bottom line for a business relationship with the potential to drive billions in revenue for CPQ.