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

To: Captain Jack who wrote (77499)	2/4/2000 10:12:00 PM
From: MeDroogies	Read Replies (1) \| Respond to of 97611

I agree that we should let sleeping dogs lie...but I don't agree on the idiocy or incompetency in the decision. You have to sit on my side of the fence for a while to understand why it was actually a good deal for CPQ. I've worked at 2 start ups, and I'm now at a major portal. I've done media sales for 15 years. AV's IPO was no sure thing, now it's less of a sure thing, but even then it was a long shot. CPQ stood to gain a tremendous amount by selling to CMGI, whereas an IPO was a very risky venture that could easily (and mostly likely would have) foundered in the following year. That had nothing to do with management. It had everything to do with position, relevance, and marketing. AV was late to the game. While it is an exemplary product...it lacked the marketing wizardry of several other early entries. As a result, the long term outlook for the AV deal is now decidedly that selling it was the best thing....as they own a substantial piece of the far more lucrative CMGI, while maintaining a piece of AV. I'd take that over 100% of AV anyday.

To: Captain Jack who wrote (77499)	2/5/2000 12:20:00 PM
From: James Calladine	Read Replies (2) \| Respond to of 97611

ALTA VISTA: I agree with you--it IS a dead issue. CPQ did what they did and it remains to be seen whether it was a good or bad idea. My view remains that CMGI is better able to exploit this than CPQ; that CPQ will fare better, Internet-wise, by its affiliations and potential tie-ins with operations in the CMGI stable. Moreover, Alta Vista is being focused as the portal tied to the FREE INTERNET services offered. That should build Alta Vista traffic measurably. CPQ has enough on its plate in digesting DEC, competing with Dell, developing DEC's 64 bit processors, cooperating with AMD while keeping INTC and so on. Maybe incorporating Transmeta processors in the product line! Imagine what other challenges would be involved if it merged with HP? I think they did the right thing with AV, for the simple reason that there is just so much that a given management group can do--particularly at a time when a massive turnaround is called for. Best wishes, Jim