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

To: rudedog who wrote (73422)	12/8/1999 2:46:00 PM
From: rupert1	Read Replies (1) \| Respond to of 97611

rudedog: my post was tongue in cheek - I gave the link so that people could read it for themselves. Nonetheless, it can be read as a backhand compliment to Pfeiffer. For someone of his stature and acomplishment to have been sacked means that there is something very seriously wrong at COMPAQ. Pfeiffer has been gone a long time now - in technology sector terms - yet people like the analyst quoted believe there is still turmoil within the company. This is one of the legacies of Rosen's intervention - good or bad, as we have already discussed. I think that COMPAQ was a good investment under $28 because it's assets are substantial. (1) Leading international brand (2) international distribution system (3) ownership of intellecutal properties (4) investment and financial assets such as 17% CMGI and 17% Alta Vista, cash and other investments. The Pfeiffer management team,(and Rosen), was responsible for building up much of those assets. The assets have a built-in degree of inertia which would produce a certain degree of growth whoever was in charge. Then there are technical stock market factors. This together takes you to $28 maybe $30. After that it is up to the new team to generate new wealth. Given the effects of Rosen's interventions including the sacking of Pfeiffer and the sale of Alta Vista, I think it is reasonable for the market to adopt a wait and see attitude and to seek less troubled investment vehicles in the meantime. I wonder what your view is of the absence of news on the lay-offs which is probably the single largest cost-saving item promised by the Rosen-Capellas team. If these could be achieved soon, with the streamlining of the inventory and distribution model, then perhaps the share price can start working on the next 10-20% of growth. Don't you think the changes to the distribution model in Europe might cause a re-sellers strike or slow-down or protest which will have at least a short-term depressive effect on sales?