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

To: The Duke of URL© who wrote (3798)	12/12/2001 2:09:21 AM
From: Dave B	Respond to of 4722

Duke, On the other hand General Motors has been pretty successful, what, a hundred years later? There are many more examples of failed mergers-of-equals. Not that it matters, but did you know that the founder of GM died virtually broke managing a bowling alley? He margined himself all the way down the back side of the initial automotive bubble (according to an IDC presentation I attended). Gateway is way over its head in debt, losing money and controlled by it lender banks. When that music stops, GTW won't be able to buy an Orange Julius stand. Agreed. Dell is a PC machine. They are fast followers, not leaders. It will be interesting to see if they can survive the transition to industry standard servers. The market for them to copy does not yet exist. Dell will love it. Their strength isn't PCs, it's manufacturing. They're set up precisely to take advantage of "industry standard" designs for servers. They'll be able to build them less expensively (and profitably) than anyone else, just as they do with PCs. Note that I'm ignoring the eMachines model, which anyone can copy (build 'em and lose money on every unit sold). I'm sure Dell will have a different set of problems down the road, however. You of course know it is a stock deal, not a cash purchase, the only cash will be the breakup fee, if any. Yes, I am. It doesn't matter, however. Whatever form of "currency" they were planning on using could be put to better use buying into new markets. There are a lot of small companies out there with exciting products that could use the leverage HP could provide. Dave