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

To: Elwood P. Dowd who wrote (76807)	1/26/2000 11:11:00 PM
From: rudedog	Respond to of 97611

El - Seymour is not a DELLhead and not an idiot either, but his goal is to create controversial positions which will attract readers - he often takes extreme positions just to get a rise out of the readers. I actually agree with about 30% of what he says. Capellas DOES appear to be a very nice guy in a world made up of not so nice folks at the top... but that's one of the things I like about him. Rod Cannion was a very nice, honest, trustworthy guy and still managed to build a pretty good company. I agree wholeheartedly with the comments about slow progress on reorganization and headcount reduction - but perhaps we will hear more this week, and CPQ has been acting behind the scenes. Jury out on that one. He says "still hasn't begun to solve its distribution problems" - I don't agree there, the distribution problems which sat unaddressed for years under Pfeiffer have been addressed... still a lot of work to be done but unless one really believes that 100% direct is the way to go (I don't), Capellas may have the winning formula. The guy has only been in the saddle 6 months and we have cut the distribution related costs in half... Seymour also says "still hasn't shown that it has any idea what to do with the troops and product lines it inherited in its acquisitions of Tandem and Digital Equipment" I guess he can't read a financial statement - those two groups, plus the old CPQ server division, delivered more than 90% of CPQ's profit and turned in net profit which was 50% better than SUNW on a percentage basis and twice as big in absolute terms... I think that's a fairly effective use of those troops. As to "Ashok Kumar points out - still puts way too much emphasis on its very-high-end Himalaya and Alpha servers" Same argument as above - should they emphasize the products which produce 90% of the profits or not?? Kumar has little understanding of the high end computer business.