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

To: rudedog who wrote (77860)	2/10/2000 10:45:00 AM
From: rupert1	Respond to of 97611

rudedog: I agree and have listed all those points before. In his reply yesterday, Andreas appeared to rely a lot on cost-cutting. While I agree with his main point that 1Q 2000 should see cost-cutting as opposed to 1Q 1999, the cost cutting in 4Q was not as radical as I had hoped. The reduction in headcount is very gradual (and there has been increases due to the Ericcson deal and the INACOM deal). In 3Q some of us looked forward to 4Q and 1Q and more radical cost-cutting along the lines of IBM in the early stages of its turnaround. The cost-cutting alone would propel earnings forward allowing some time for operations to gear up and make contributions later. I was also disappointed - and a puzzled - at the slow rate of increase in consulting services. Capellas had gone out of his way to describe it as the "hidden jewel" a month before earnings - I thought this was a hint of something better than we actually got. I always thought 1Q would be difficult, relying on almost perfect execution. I believe that the new PC and server products will start contributing signficantly only in the 2Q. The new and improved COMPAQ - including much reduced costs, all new products ramped up, the full impact of Windows 2000, will start happening in the 2nd half. For investors the question is when will the market start anticipating with confidence.