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

To: rudedog who wrote (89743)	2/18/2001 11:11:00 AM
From: Elwood P. Dowd	Read Replies (2) \| Respond to of 97611

rude... it does seem rather strange that WS embraces the strategy of a company who chooses to focus on what Wall Street has already labeled an "old economy" technology product with slowing demand. Could MD put so much value in the thought that when the pc faucet is turned back on that DELL will be in the driver's seat and be able to not only reap the lion's share of the business but also be able to raise prices and thereby benefit handsomely from higher margins in a resurrected market? Seems to me he is only prolonging the inevitable and that is that eventually he will have to spend more on r&d and diversify to remain a player in an ever evolving technology environment. El

To: rudedog who wrote (89743)	2/19/2001 8:57:22 AM
From: MeDroogies	Respond to of 97611

MD is probably hoping for some spillover effect from PC to high end. How he plans to achieve that, I don't know. Perhaps by cutting sweetheart deals with large companies on PC's and packaging in servers. That seems like a smart, and logical, plan. Unfortunately, these are two separate cost and purchasing centers in most companies, and deals of this nature are rarely cobbled together at levels that would overrule the centers' jurisdiction. That makes spillover of this nature unlikely. Besides, it's a strategy tried before that hasn't worked. I'm totally confused by MD except to say that he may be trying to engage in FUD and drag CPQ along his own sorry road.