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

To: Tumbleweed who wrote (10076)	12/3/1997 5:11:00 PM
From: hpeace	Read Replies (1) \| Respond to of 97611

joe, yes...becasue of the 100 turns a yr. according to jimbo..cpq has 95% of the sub k market in 3q97.

To: Tumbleweed who wrote (10076)	12/3/1997 5:25:00 PM
From: StockMan	Read Replies (1) \| Respond to of 97611

Joe, Re -- Compaq makes more profit on a $1000 machine that the business models. Really, show me the numbers. There are reports, which state that CPQ's margins are in 5-6% range on these machines. They can't because the middleman has to get his cut. CPQ squeezes, the 2nd tier companies (only these will sell out), such as Cyrix and AMD and other peripherals for at cost deals. Thus most of what goes into the really cheap PC's such as the 799, 899 etc.. are 2nd tier peripherals. Stockman

To: Tumbleweed who wrote (10076)	12/4/1997 8:16:00 AM
From: Wally Mastroly	Read Replies (4) \| Respond to of 97611

Discussions with some brokerage analysts indicate that CPQ makes about 100% profit(i.e., $500.) on the $1000 computers. Info comes second hand from an analyst who has participated in COMPAQ conference calls. The same analyst said CPQ has about 70% of the $1000 PC market. I do not have documentation to verify this information. If anyone has been in on any such conference call(or seen any transcript of one) please comment to verify or refute this information. Thanks.