Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : HWP -- Hewlett Packard -- Ignore unavailable to you. Want to Upgrade?

To: Oeconomicus who wrote (3779)	12/11/2001 6:24:22 PM
From: BelowTheCrowd	Read Replies (1) \| Respond to of 4722

Actually, I thought GTW was a good buy for HWP for quite some time. For better or worse, they've kind of figured out the consumer game. I think culturally they're also a fairly good fit. Have worked with some people over their on some industry task forces and was always impressed. It would give HWP an immediate direct channel to consumers and small/medium businesses without cutting off existing relationships along the way. In fact, HWP would be able to portray itself as making concessions to retailers and resellers by closing the Gateway Country stores while keeping the direct channel alive and well. If you want to buy your way to bigger PC exposure, while not diluting and confusing the offerings on Unix and other servers, that would appear to be a good way to do it. Of course, it wouldn't give HWP a big services organization, but my strong opinion is that you can't buy one of those, you have to build it internally. mg

To: Oeconomicus who wrote (3779)	12/11/2001 6:33:42 PM
From: Dave B	Read Replies (1) \| Respond to of 4722

Bob, Dell, of course, would not want to be saddled with the costs and figures they'll get the share anyway just by doing what they already do so well. If it ain't broke, don't fix it. I agree, and it's something to think about. If the company that has become the dominant player in the segment isn't interested, maybe there's a reason. In the overlapping segments, maybe HP should figure out whether it's in their best interest to simply perpetuate (and, heaven forbid, expand) the business model that has been losing ground to Dell for years. It seems that 18% of the outstanding shares have decided it's not a good idea. But GTW could hardly be the buyer at less than 1/5 of CPQ's market cap. It's happened before with even larger disparities. Just issue more stock (simple to say, I know). Dave