Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Kenneth R Miller who wrote (9349)	11/22/1997 1:58:00 PM
From: hpeace	Respond to of 97611

Ken, the reduction in esp reflects only the negative of the fareast where cpq doesn't have much exposure, trades in $'s only except Japan mostly..,, Hedges currency well in japan anyway, and deosn't reflect the fact that Europe has woken up... plus, the kicker is this..they should be raising eps est. here's why.. the currency may make the pc's harder to sell in japan and alike.. but, europe is awake now and will triple what they lose... here's the good news. the thing that makes dell and cpq's more expensive in japan drastically drops their purchased cost of pc and a pc is 92% purchased mat'l.. this drastic drop in prices is for all the pc's and servers sold... so, the price drops in raw mat'ls apply to 100% of the prodcuts whereas the lost in sales is a tiny portion. the effect should be positive.. this has happened before and the extra profit in redcued purchased parts was great