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

To: PCSS who wrote (76847)	1/27/2000 6:50:00 AM
From: PCSS	Read Replies (1) \| Respond to of 97611

I thought(?) I just saw a report from Ron Insana, CNBC, @ the World Economic Forum in Davos that the speakers included Mike Cappellas & Mike Dell. If so, won't it be detrimental to the CPQ Analyst Meeting that MC might not be there. Unless, (1) MC speaks in Davos and then flys quickly back to the Analyst Meeting, or (2) MC is at the Analyst Meeting then flys to Davos, or (3) Stays in Houston and speak to Davos-ians via teleconferencing. I sure would be most comfortable having MC @ the Analyst Meeting. Michael

To: PCSS who wrote (76847)	1/27/2000 8:50:00 AM
From: rupert1	Respond to of 97611

Michael: I listened to the Dan Niles interview. From memory here are some of the points: 1. Big conclusion, repeated several times, that if COMPAQ can achieve the 15% growth it projected and raise margins to 11-12%, as it projected, then earnings would triple over the next two years and the stock price more than double. If it executes, it will be one of the best performing large cap tech companies over the next two years and he is betting it will succeed. 2. DELL has hit COMPAQ hard. DELL has the advantage of speed of "integration" from its direct model and lower costs which translate into lower prices. That apart, COMPAQ is comparable in every respect (PC's). Since DELL makes a lot of money from commercial PC's, COMPAQ ought to be able to reduce its losses and make money, too. The Inacom deal will help. 3. COMPAQ has had flat or declining revenues for 9 months. 4Q was the first in which revenues increased - and by 14%. $10.5 billion was better than the $10 billion he had expected. The company forecast of 15% growth was 5% better than his original forecast. The aim to increase margins from 4% to 12% was also encouraging and better than he had anticipated. 4. COMPAQ is in major turnaround mode. Overall, I think an ubiased person listening to the interview would feel that Niles was recommending COMPAQ over DELL. The "two years" reference was a bit odd.