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

To: Louis A. Rawden who wrote (70395)	10/27/1999 7:40:00 PM
From: Walcalla	Respond to of 97611

Excerpt from The Houston Chronicle "The Digital acquisition did not live up to the initial billing, there's no disputing that," he said. "But finally, the worst is probably over, and it is starting to come around to having a positive result." But Ashok Kumar, an analyst in Minneapolis with US Bancorp Piper Jaffray, said "the long-term trend continues downward." Earlier this week, two market research companies indicated that, for the second quarter in a row, Compaq had lost the No. 1 PC-maker crown in North America to arch-rival Dell Computer Corp. Some analysts warn that Compaq could be in danger of losing its worldwide title as well "If you look at the commercial desktop line, the company has completely lost traction there," Kumar said. "If you look at it geographically, there have been budget cuts as deep as 40 percent in some places. Europe, for example, is in complete disarray, and historically it's been one of the strongest parts of the company." Kumar said Compaq has yet to launch a major initiative with its services business and he believes it is losing business to IBM. "The bottom line is irony -- in spite of all the acquisitions, Compaq is falling back to becoming a commodity player again," Kumar said.