Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: paul who wrote (67657)	9/15/1999 1:09:00 AM
From: Mang Cheng	Respond to of 97611

"Fund Mgr Says Tech Business Fundamentals Remain Strong" Dow Jones Newswires -- September 14, 1999 NEW YORK (Dow Jones)--Business fundamentals remain strong for the technology sector as a whole, said John Hancock Global Technology Fund's Marc Klee. During a CNBC interview Tuesday, Klee said the fund has garnered a 130% return on its investments over the past 12 months as the technology sector skyrocketed. Even as Klee's largest holding, EMC Corp. (EMC), nears its 52-week high, the fund manager said the enterprise storage system and software maker's stock is undervalued. "My inclination would be to add not subtract from the position (in EMC) at this point because I think the fair value is up in the mid-80's and with the stock in the upper 60's I think there is more to go," Klee said. EMC's profit margins will continue to increase as more of its business comes from higher margin products like software, Klee said. Among some of the bellwether computer companies, Klee likes Dell Computer Corp. (DELL), Gateway Inc. (GTW) and Compaq Computer Corp. (CPQ). Compaq however, has the most upside potential because the stock has been beaten down and is currently trading off about 50% from its highs. As for Dell, "the outlook remains very bright particularly in the server business," he said. -Amy Hughes; 201-938-5171

To: paul who wrote (67657)	9/15/1999 7:58:00 AM
From: rudedog	Read Replies (3) \| Respond to of 97611

paul - now assuming the avg selling price of a Starfire is around a million dollars including startup services and support that translates to about a billion dollars a year I'm not saying it's not a good business, I'm just saying it's not a BIG business. Also not the future of the web infrastructure or of mainstream IT infrastructure, which appears to be going in exactly the opposite direction - to large farms of small boxes, rather than a few huge systems. Also Starfires drag in lots of other infrastructure That's the real key - most estimates are that the UE10000 drags as much as 5X revenue in related sales, and as such has been the key to Sun's growth. CPQ's failure to field large systems like Wildfire in a timely way has held them back and reduced their ability to compete with Sun in that high end space. But the key to understanding that is to look hard at the economics of the related sales, rather than the big boxes per se.