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

To: Mao II who wrote (69887)	10/25/1999 11:30:00 AM
From: rudedog	Read Replies (1) \| Respond to of 97611

M2 - See my other post. I think CPQ is concentrating on cutting the excess costs out of their PC delivery chain, getting the sales force to understand systems sales rather than box pushing, and cleaning up their distribution to improve customer sat. I don't think they are, or ought to be, concerned about what DELL is doing, let alone obsessed. I have said for 2 years now that CPQ and DELL are moving in different directions. The boys from Round Rock are having a hard time letting go but I don't think CPQ has that problem. Lets assume that it would cost CPQ $100M for each point of share gain against DELL above the "maintenance" position. Would you think that was a sensible investment? That represents about .05 in EPS for each point of share. There are better ways for CPQ to spend that money - or conversely, to use it to offset costs which will actually grow the business.