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To: derek cao who wrote (41342)	12/3/1997 12:40:00 PM
From: Larry Loeb	Respond to of 186894

All, Interesting item from WSJ Interactive: Analyst Says Compaq Will Start Selling PCs With an AMD Chip An INTERACTIVE JOURNAL News Roundup An industry analyst said Wednesday that Compaq Computer Corp. will begin selling computers next month that use the K6 microprocessor made by Advanced Micro Devices Inc. Southcoast Capital analyst Ashok Kumar said Compaq will begin selling desktop machines and notebooks with the K6 chips, which are an alternative to Intel Corp.'s Pentium II microprocessors. Mr. Kumar said Compaq has begun shipping K6 machines into the retail channel, but decided not to announce the arrangement for fear of disrupting holiday sales. Advanced Micro also will supply chips to Legend Holding Ltd., a top Chinese computer maker, according to Mr. Kumar and to published reports. An Advanced Micro official declined to comment on both speculated arrangements, and Compaq officials didn't return calls seeking comment. A deal with Compaq has been rumored since the very week AMD introduced the K6 chip -- aimed at wrestling market share from industry leader Intel -- this spring. AMD hoped to outflank Intel by charging less for its high-performance chip, but the company's efforts have suffered as production yields have fallen short of expectations. AMD has more than 100 customers for the K6, including large companies like International Business Machines Corp., Acer Inc. and Digital Equipment Corp. But the question remains whether AMD can use the new business -- and produce enough chips -- to give broad-shouldered Intel a real fight. AMD has two quarters to establish itself before Intel is able to get its latest-generation Pentium II to a price that will put it in machines selling for $999, Mr. Kumar said, adding that AMD's efforts may be "too little, too late." Even so, Compaq is expected to sell a $999 Presario running a 233-megahertz K6 chip and a notebook computer with a 166-megahertz chip, Mr. Kumar said. Legend should be able to produce machines in the $599 to $699 range with 166- and 200-megahertz chips, he said. Compaq has already shown that it isn't wedded solely to Intel -- it uses a microprocessor from Cyrix Corp. designed specifically for less-expensive computers, for example.

To: derek cao who wrote (41342)	12/3/1997 6:04:00 PM
From: Charles Skeen	Read Replies (2) \| Respond to of 186894

===OFF-TOPIC=== Re: <<it is almost impossible for long bond drop below 6%.>> Nonsense! 1. Ever hear of an inverted yield curve? (Long-term rates below short-term rates.) In the good old days (i.e., the 1960's, the 1970's, the 1980's), an inverted yield curve was the norm about one third of the time. It usually occurred at the peak of a business cycle, as business demanded more money than the Fed would create. 2. Even if the Fed does not drop the Fed Funds rate, the market might, if there is a further flight to quality (i.e., short-term US Treasuries) from Asian and other markets. Buy bonds! Charlie.