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

To: Charles Tutt who wrote (90898)	4/25/2001 7:51:46 AM
From: rudedog	Read Replies (3) \| Respond to of 97611

Charles - they also have to make decent profits in the high end <G>... I think CPQ is trying to go in that direction but did not anticipate the bloodbath in consumer combined with a big slowdown in the high end. I would bet that they will now accelerate the move away from PCs as a percent of corporate revenue by being more aggressive on PC pricing. Also, I think their next round of servers are about due - both Compaq and IBM are rumored to have a new line of "super-dense" servers on the launchpad. DELL has re-focused on PC efficiency (and share growth) and they probably have some room to run as "king of PCs". Now that DELL investors have wrapped their minds around net margins under 5%, DELL can probably sustain that strategy with reasonable growth for quite a while. So while I think NW's scenario will play out, I don't think it will happen soon (i.e. not this year). I expect DELL to show decent numbers this Q based on management's recent statements.