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

To: Andreas who wrote (92342)	7/26/2001 12:09:13 AM
From: Captain Jack	Respond to of 97611

Andreas-- two things come to mind,,, 1st cpq needs to be spending on R&D a % higher than auto mfg. Most importantly you said <"I guess he's all you get for $29 million!!!"> and he is all you get for any price as no one else but the janitor would take the job,, so the BOD made a mistake,,LOL!

To: Andreas who wrote (92342)	7/26/2001 9:15:46 AM
From: MeDroogies	Respond to of 97611

I don't know what business your client is in. But it is much easier to get those economies of scale in a small to mid sized company for several reasons. 1. the industry - some industries have higher fixed costs which allow for greater amortization and better margins 2. politics - the larger a company gets, the more politics play in keeping staff and budgets larger than reasonably necessary. 3. cycles - one industry can perform extraordinarily well in an up cycle, another won't....some perform well no matter what because they aren't cyclical at all 4. management - good management knows how to manage most of these things. Not disputing your post AT ALL. Just pointing out to use a comparison like that needs to be noted as "empirical evidence" of management incompetence. My guess is that MC suffers from deficiencies in 3 of the 4 above....at this point, whether the third is #4 or #1 remains open to speculation. I, however, am rapidly shifting to #4.