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

To: Dave B who wrote (3942)	12/15/2001 11:23:42 PM
From: rudedog	Read Replies (2) \| Respond to of 4722

Dave - I was not saying in any way that the victory of the CPQ Classic executives over their more numerous DEC peers was a good thing, only responding to the (previously corrected) statement that CPQ management had been replaced by DEC management. As to the comments about the foundation, I am again only saying that the foundation may be in troubled water because of their activist stance. I happen to be against the merger, but it is because I think CPQ has finally done most of what they should have done in 1998 directly after the DEC merger - and, in fact, what CPQ executives said at the time was the plan (behind closed doors). That plan was to unload pretty much all of DEC but the services business, in a way that fostered a closer relationship with Intel (CPQ and Intel had some rough years under Pfeiffer) and shift the emphasis away from the PC business, which even in 1998 looked like a weak horse. Now that much of that work has been accomplished, CPQ should be in a great position to capitalize on any upswing in the market. Their PC inventory turns are heading towards 50, only a little behind DELL. They are leaders in blades architecture and were one of the lead engineering forces behind infiniband. The combination of those directions will probably define how the upper midrange plays in the coming years. HP is years behind in that area and seems locked into the older generation centralized SMP paradigm. CPQ has one of the strongest storage teams in the business, HP is not a player in storage. The only thing CPQ gains from this merger is the printer business IMO, and they could get that by going after Lexmark. So I guess that on balance, I hope that Hewlett is successful in tanking the merger, as that will be best for CPQ, and I have no position in HWP...