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Technology Stocks : Hewlett-Packard (HPQ) -- Ignore unavailable to you. Want to Upgrade?

To: MeDroogies who wrote (171)	5/8/2002 10:57:07 AM
From: Dave B	Read Replies (3) \| Respond to of 4345

MeDroogies, This is a big picture. HPQ is well placed to take advantage of that big picture if they move swiftly and execute well. Dell's model is sensitive to price changes, whereas HPQ's is less so. Dell may have brand presence via advertising, but HPQ has it in stores as well. You have this completely backwards. I heard once that because Dell doesn't make the PC until it's ordered, Dell actually doesn't pay for the parts that they assemble into their computers until an average of 8 days after they receive the money from the customer for the computer. Because HP and CPQ sell through the channel, they pay for the parts, on average, about 45 days before they receive payment for the PC. In an environment of declining prices, Dell actually benefits from price declines, while HP and CPQ receive less money for a PC that it cost them more to make. In other words, when prices are going down, you don't want inventory sitting around declining in value. This is just one of the reasons they'll never "make it up on volume". The channel sucks from a profitability point-of-view. The best thing they could do would be to dump it and go completely direct (though there would obviously be a short-term hit to sales). Dave

To: MeDroogies who wrote (171)	5/8/2002 10:58:49 AM
From: Piotr Koziol	Respond to of 4345

MeDroogies, There was only one pie chart in the employee presentation yesterday where DELL could be seen, and even there it was a minor part of it... What will be of utmost importance is the execution of the merger plan, and a significant part of Carly and Michael's schedule is keeping track of the progress there. Piotr

To: MeDroogies who wrote (171)	5/8/2002 11:09:23 AM
From: Lynn	Read Replies (2) \| Respond to of 4345

Dear MeDroogies: Let me add to what you just said: "It's fine. It's his viewpoint. But I find it funny that people get blinded by simple things. PE ratios/market share/superior model...." I also find it funny when someone assumed to have a stock portfolio spends so much time looking at and trying to bash a company _not_ in his/her portfolio and one he/she has no intentions of buying. Why not devote one's attention to one's own portfolio and, in terms of stock discussion, share one's opinions of the competition with fellow shareholders of the stock in one's portfolio? This information is ultimately of more importance to them then the people who hold shares of the other company. Let his/her fellow shareholders determine if what he has to say about HPQ (or anything else) is correct or not. Bashing is a waste of one's time. Coming over here just to bash is like the person who pays so much attention to the weeds growing on the neighbor's lawn that his own lawn doesn't get cut. BTW, I really, REALLY dislike that DELL commercial where the kid is in a car with a girl talking to an adult who knows his father. What a great commercial. After giving the man advice the TV viewer is supposed to take (call DELL), the commercial ends with a lie: "Steven, isn't this your father's car?" Reply: "Nooooooo." I sure hope HPQ never has a commercial with such a mixed statement of credibility. Edit: I just read your posting where you mention being in advertising and the Dell Dude. My comment inadvertently commented on that posting as well. Regards, Lynn

To: MeDroogies who wrote (171)	5/8/2002 11:33:42 AM
From: Elroy	Read Replies (1) \| Respond to of 4345

"HPQ is well placed to take advantage of that big picture if they move swiftly and execute well. " Please explain! I've pointed out that HPQ is worse at low end commodity stuff than Dell due to HPQ's higher operating costs, worse in high end technologies than IBM/SUNW/EMC due to HPQ inferior technology (HPQ is ok in storage, lousy in servers) and worse than IBM in full service, turnkey solutions. These are all long term weaknesses. How is HWP well placed to do anything except cut costs in the short term? What is their advantage in any area other than printing and imaging (~30% of revenues)??? Explain!! Elroy