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

To: John Koligman who wrote (8939)	11/14/1997 6:54:00 PM
From: Box-By-The-Riviera™	Read Replies (4) \| Respond to of 97611

Yes... a p/e of 12 would be appropriate going forward with a company whose real growth rate would be around 11%..... add two bucks, depending upon reliability of earnings/consistency. as to tandem.....given the new growth projections, i would hope they would spend some of that cash to broaden their business from a pure commodity play to develop a few lines that have some margin protection . Having all that cash, is in fact, not a good thing if they don't generate real growth from it. As to buying tandem, yeah so what. I just bought a car, a declining revenue (increasingly negative) stream at best. Joel

To: John Koligman who wrote (8939)	11/14/1997 6:56:00 PM
From: Box-By-The-Riviera™	Read Replies (1) \| Respond to of 97611

Also....everybody and his mother will be (and is) selling servers....and the profit margins on these will steadily decline going forward.... servers will go the way of pc's....just another commodity like soy beans. They will be fighting like crazy (all those selling servers) to protect their markets/increase them....resulting in the same curve of adoption per the history of pc's. None of these guys has a single killer line up they can protect from this cycle. Joel