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: PCSS who wrote (74261)	12/21/1999 11:25:00 AM
From: Senator949	Read Replies (1) \| Respond to of 97611

... this pattern is not a normal one Any upward movement for this pig is abnormal... <ggg> Robin

To: PCSS who wrote (74261)	12/21/1999 12:01:00 PM
From: Elwood P. Dowd	Respond to of 97611

Lifted at the Zoo. El ......... CNBC - Market Watch Transcript: Ted: If you can't beat 'em, join 'em! Houston-based compaq computers has had difficulty for years, trying to emulate dell's made-to-order system. And now it may have finally found a solution. Gary mcwilliams, tech reporter for "the wall street journal," reports in today's issue that industry insiders say compaq and inacom are in discussions for a deal that would turn some of inacom's assembly and distribution operations over to compaq .. Ted: Gary, nice to have you with us. I can see your lips moving. Want to say hello again so we can make sure we hear you. >> Can you hear you? Ted: Now i can. What are hay going to do. >> Inacom corporate, one of its largest corporate computer dealers, about acquiring a bill-to-order capability, compaq has wanted to create that internally. We're hearing the company's getting ready to go outside for that. And this is key, because big corporations don't want to customize the machines after they receive them. They want to receive them with the proprietorship software and hardware already installed. Ted: Why would compaq want to farm this out? The margins on these machines are not great to begin with. Now you're adding another cost issue here of having to pay somebody to do this. Why not set up a separate unit entirely? >> That's a good point. There's two issues here. One is that compaq has tried to do this and has not been able to. Its specialty is mass production. And it hasn't been able to get to the quantity of one efficiently. It's tried, but hasn't worked. Separately, what we're seeing now in the computer dealer channel is these people are now struggling. They've built that capability, but the declining hardware margins are forcing them to look for new sources of revenue. And i think there's a potential here that this could solve a problem for inacom and solve a problem that's nettled compaq for at least three years now. Ted: Do we know who would do this for them? >> They're talking with inacom corporate out of omaha. Ted: How much of a threat does this pose to dell? >> I can't say it's a great -- this has been the hole in compaq 's strategy for the last few years. You know, as you've reported, i think that dell has gained the top see her in the u.S. Corporate desktop market and compaq has slipped below its lead there. This chans to sort of regain some of that lost momentum. Ted: What does this do in terms of consolidation of computer dealers? >> That's an open question. I mean, if this agreement goes more than a simple outsour, if it goes to beyond to perhaps a joint venture or investment, what we're likely to see is pressure on the other large dealers, the microages and compu.Com systems of the world to find a partner of their own hardware partner. Ted: Gary, nice have you. Thanks for being with us today. Ted: Gary mcwilliams of "the wall street journal" joining us live today from houston.

To: PCSS who wrote (74261)	12/21/1999 2:32:00 PM
From: Piotr Koziol	Read Replies (1) \| Respond to of 97611

Michael, the "mystery buyer" has been at it again, look at the volume spike right around 14:15 and the BEAUTIFUL effect on CPQ price :^) It may have been just coincidence that GreenSpam chose the same time to announce the interest rate "thing"... /Piotr