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

To: P.T.Burnem who wrote (8404)	11/2/1997 11:41:00 AM
From: Imran	Respond to of 97611

PTB, "The real question is whether unit growth can offset the ASP decline. The answer is "no" for the PC industry as a whole. #2 DELL is already showing signs of weakness..." In the sub-1K arena, volume is king. DELL, IBM, and others are leaving this arena to the likes of CPQ. I don't see the emerging sub-1K market as bad for CPQ, rather the opposite. It will give CPQ pricing power as they increase market share, thus allowing them to cut pricing even lower. These lower prices will give CPQ greater market share... and the circle will continue. I expect CPQ to own 30-40% of the PC market by 2000.

To: P.T.Burnem who wrote (8404)	11/2/1997 2:06:00 PM
From: John Koligman	Read Replies (1) \| Respond to of 97611

PTB - Last I heard, the WEBxx boxes were NOT selling all that well. PC's to my knowledge, are. In my opinion this industry will continue pretty strong, when Merced comes out there will be another round of upgrades, tech marches on. Margins are always a concern, but so far, CPQ is selling lots of the cheap boxes and margins appear to be rising. SE Asia cutting prices is a net plus for CPQ, remember they make money on the high end, so even if WEBxx does take off, that means more server sales, doesn't it??? (And more higher margined sales for CPQ). The other thing is, why would management say the company will be 50b in a couple of years, and split the stock? If things are tanking, and CPQ should sell at 40 or 50 or whatever, why split it? That would be close to a post split price if CPQ stays near it's highs... John

To: P.T.Burnem who wrote (8404)	11/2/1997 4:48:00 PM
From: hpeace	Read Replies (3) \| Respond to of 97611

ptb, please look at june 1992. cpq cut the price of pcs from 4000 to 1800. also, since I've been in this business since the beginning. pc's use to run 7-10k. and , explain why cpq can sell so many of the retail units this last qtr. Price of the unit you quoted was the same price and still make so much money. and, the business pcs have been alittle of $1000 for maybe 6 months and cpq continues to make great profit. My point is, you haven't followed the industry long enough and are unfamiliar with it.... You also, have no industry research reports that outline the guts of things. for cpq the price drops come from the vendors and by dropping cost and cycle time out of the processes like thier new ditum of 100% EDI on all supply vendors. Cpq's price drops just casues other pc mffg'ers to weaken and drop out and thus cpq gets more market share. did you know that the business pc I buy cost about 1000-1100 for the last 9 monhts... there hasn't been a change. so, why is cpq screaming up the last nine months by selling me pcs this cheap. question: what does market research say the avg price of a p166 has fallen from the last yr. and the p200???? give me the research please???? also, how many pcs have you purchased in the last 3 months. Please give me the margin dealers make on at least 5 of cpq's retail units. If you can answer allot of this raw data then at least I know you have some of the facts, but are just misinterpreting them<gg> also, explain why cpq's gross margins have gone from around 22% to 27.4% with all the price drops happening. Okay???? give me some facts here. Your turn to give me answers to tough questions but they are easy if you have any raw research data??????

To: P.T.Burnem who wrote (8404)	11/2/1997 11:41:00 PM
From: hpeace	Read Replies (1) \| Respond to of 97611

PTB, quit hiding, answer the questions I gave you today.... thanks. cpq's.dell,hp had each over 50% unit growth. i've seen this before and evn said this would happen. a pc use to cost 10k for the basic jane....now you pay $1000 and margins are enough to make the bucks bec. cost and cycle times have been slashed. i heard that cpq has even indicated that you are up to seamless EDI are you aren't a vendor of theirs. please answer the research questions or tell me "it's just your opinion and you don't have facts"...if it's you opinion..then okay..you can have that. but , don't say private research is reporting this..it isn't. I get them all.