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

To: Analog Kid who wrote (10323)	12/5/1997 11:10:00 PM
From: Analog Kid	Read Replies (1) \| Respond to of 97611

To explain further, I don't think any price cuts at THIS time will be looked upon as good news by the financial community......Long term I'm sure it is good for the company. We need reports of good X-Mas sales and upgrades because of these sales to drive this stock higher in the short term. We're not going up just because Dell is......Although I wish it would since I'm loaded with both.

To: Analog Kid who wrote (10323)	12/5/1997 11:24:00 PM
From: hpeace	Read Replies (1) \| Respond to of 97611

please see my answer... cpq already has accted for the price cuts. they were in last qtrs numbers via reserves. it's legal since if they ship something to a dealer in 3q97 and they know in 6-8 weeks they are just going to give him a credit back for part of that to move the prodcut. Then honest accting practices would reserve that portion off in 3q. so, a price redcution now is already paid for and does not hurt this qtrs. profit or revenue. I wrote the program that helped tract this years ago. the only dif today is cpq has 10-12 weeks of inventory. this would be dif thatn price protection which has dropped from 8 weeks to 2 weeks. this would be a rebate to fund a sale. cpq can also give away advertising etc. etc. Are you getting this..if so, there is one negative.. what is it????? but it doesn't hurt revenue or profit in 4q97