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

To: MikeyT who wrote (76611)	1/25/2000 8:33:00 PM
From: rupert1	Read Replies (1) \| Respond to of 97611

Mikey: Growth in what, measured from where? Usually growth in revenues measured year by year. If he keeps his promise on execution, with reforms in the commercial PC divison, changing from loss to profit, increased revenues from that division will have greater leverage on net earnings. He has said that he expects a sequential decline in 1Q. 1Q is usually a problem (it was a catastrophe last year!) Because 4Q has a seasonal boost in the sale of PC's which is a hard act to follow in 1Q made worse by the fact that consumer spending drops off. But that said, I think he was being very conservative again. This 1Q should see a spike from sales of iPaq and EZ2000 as well as Windows 2000. Also, less than 50% of revenues are from PC's so the 1Q PC-effect should be less. Also, there should be more post-YK2 buying. So I would guess that 1Q may be flat or up a bit, not down: at least it will be better than he suggests. As for Kumar - his remarks are virtually bullish! Remember he is coming from an extreme position. He is sold on the PC and sold on the DELL business model. He sees everything in terms of DELL v CPQ. For him to say it is a value play, and there are promising signs, is a major reversal of opinion.