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

To: Joe NYC who wrote (8364)	11/1/1997 9:16:00 AM
From: hpeace	Respond to of 97611

Jozef, Please keep reminding me for reports. You know that months ago they really increased capacity on the inside. Then weeks ago they went to two shifts for testing. This is a very streamlined plant..extremely streamlined. The only imbalance right now seems to be the testing. So, they can assemble allot of unit's 1000's and it takes two shifts to tests them. Plus I think they have another international site where these are assembled. I heard Japan is coming back on the retail cpq pc. But testing is two shifts now. We know from the CPQ 3q97 report that retail went up 111%. We know that retail took cpq off the charts on units sold to such a marketshare that no one but IBM ever had this market share and that was early eigthies. Here what I see happening. CTX had to cut their premier p166 from 1399 to 899 becasue inventory was backed up. Cpq is hogging all the sales. This is the first salvo. I see the other retailers having to slash their prices this qtr to get sales and drop inventory. There is also the COMPUSA $500 pc and MICRO vchannel $500 pc coming. Cpq's already released the sub $1000 mmx pc. Count of cpq selling the lights out becasue they will either keep up their sales pace or drop prices. Good news. I have research that dealers make between 10-14% on these sub 1000 sales. I think cpq makes the same profit on these sales. Cpq has already antiscipated this(competitor pc price drops) and took a charge as a reserve in 3q97. So, the price drops will not effect fourth qtr. They took hit 3q97. Hope this helps....I'll post here and cyrx thread..good going cyrx freinds. If something changes at you know where, I'll post.