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

To: Andreas who wrote (77950)	2/11/2000 12:15:00 PM
From: Nilesh Parikh	Read Replies (1) \| Respond to of 97611

Andreas: I don't know and if I knew, I couldn't comment on it. You asked me to discuss anything specific or concrete that would show we're turning around. I can only say what my views are based on general public information. CPQ is committed to move towards direct model. The recent Inacom deal gives me a lot of confidence in our ability to move faster towards direct model. The expenses are being managed more strictly, often micro-managed. That's a healthy sign for returning to profitability. ESSG brings 55% of the revenue. This is the business where the profit margins are reasonable, specially for high-end servers. The expected growth in Telcos, finance, internet is huge, CPQ will benefit from this growth. The storage business (out of ESSG) has huge potential. With The recent split of the h/w and s/w components of stoage was positive. Keep an eye on the professional services area. Just look what IBM has done in this area. CMGI investment will benefit CPQ strategically. I know Victor does not agree. CPQ is turning around, you really have to understand the value of CPQ stock against 2000 earnings potential, 2001 earnings potential, as compared to other stocks. I'm trying to be careful on what I post here, given I'm CPQ employee, so pls. keep that in mind when reading my post. -Nilesh.