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

To: rudedog who wrote (70409)	10/27/1999 8:31:00 PM
From: Elwood P. Dowd	Read Replies (1) \| Respond to of 97611

rude... what was the specific reference that Capellas or one of the others made to DELL and something that CPQ had done in the way of a competitive maneuver to answer or stifle DELL? thanks, El

To: rudedog who wrote (70409)	10/27/1999 8:46:00 PM
From: rupert1	Read Replies (1) \| Respond to of 97611

rudedog: Thanks - I did not hear/read the CC. Kumar focuses especially on the drop in revenues in COMPAQ's commercial PC segment ("they have lost traction etc"). If your analysis is correct, he has missed the point. In the first place, he has failed to recognise the impact of changes in accounting for inventory. In the second place, he should be measuring future profits not revenues, in that segment. In the third place, that segment should not be used as a stand-alone criteria of COMPAQ's health nor should it be given the weighting that Kumar gives it. That segment is an adjunct of the drive to sell integrated systems and services which have higher margins than that segment has. As I said yesterday, my first concern was about the relative lacklustre performance of Services segment, as a whole. And for some time we have been hearing that COMPAQ may not be up to snuff in this segment.

To: rudedog who wrote (70409)	10/30/1999 3:49:00 PM
From: jim kelley	Read Replies (1) \| Respond to of 97611

Dog, RE:"So CPQ takes the position that they will continue to dominate in that segment, but not bet the ranch on it. The takeaway is that if Gerstner is right, CPQ wins because they are shifting to the enterprise model. If the PC business stays reasonably profitable, CPQ will be the majority player, also profitably" Hmmm.... CPQ not making money in the rapidly growing PC consumer market. CPQ's enterprise sales growth is negative 15% . Service revenue growth is stalled. They have a miniscule professional services business showing moderate growth. Yes it looks like HWP, CPQ and IBM are going to do better than GTW and DELL. Looks to me like DELL is successfully moving upstream in the Enterprise market. While CPQ is withering on the vine. What a spin... Nice try but no sale!