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: rupert1 who wrote (70453)	10/28/1999 11:27:00 AM
From: E_K_S	Read Replies (1) \| Respond to of 97611

Victor: You list some very good points and I agree that by late next year (6-8 months) the PE will expand once the market recognizes the fundamental changes CPQ is making to their business model today. This was the case for SUNW about two years back. They continued to show 20% growth and were priced at a 20 PE for sometime. All of a sudden beginning this year, their PE expanded to over 50 based on many of their investments they made 18-24 month's earlier. Perhaps part of the conservative valuations by several analysts is due to the limited vision our CEO is providing. Once the fog clears and we get passed the Y2K event, Mr. Market may recognize the value. There are however, (like Mr. Niles) some analysts that believe we have not seen the bottom. I do like the point you made regarding CPQ's push for their low end PC division to convert to the direct model to as much as 40% by the end of FY2000. Regards, EKS