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

To: hpeace who wrote (10917)	12/11/1997 5:04:00 PM
From: Bilow	Read Replies (3) \| Respond to of 97611

Re: An average support call costs a PC maker $25 to $50 to process, according to some estimates. That explains the CPQ price drop! Clearly Michael Burke is systematically draining cash out of the company with his service calls! But seriously, it is clear that institutions are dumping CPQ. But CPQ is clearly in better shape than DELL or GTW. So why are they doing it? My answer: Cause the institutions have more shares of CPQ than those other companies. The other half of the equation is that retail stock buyers are preventing the market from crashing. That's why retail favorites like GTW are doing relatively well. If the institutions were neutral, the Dow would be at 10000 and CPQ would be at 120. But they're not. The institutions are selling cause of SEA, and the public just isn't worried. The news from SEA gets worse and worse each week, with the vast majority of the effects not to show up until mid next year, but even now companies are blaming lower earnings on it. Wait till the cheap imports start flooding the country. The Fed knows what is going on and there is only one way that interest rates are going up, and that is if they are forced to defend a crashing dollar. Maybe that will happen, but not real soon. Until then, lower interest rates due to fed liquidity are not a good thing for stocks, instead, they are a sign that the fed is assuming we are in deep doo doo. It's the fed's job to figure these things out. The rest of us are just amateurs. And when the fed tells you that stocks are over-valued, you really need to listen. steve, with your classes in economics, you ought to be aware of what is going on. Instead, you are just looking at the immediate effect on CPQ itself. Step back, and take a look at the forest. It is on fire. The institutions are running for high ground. Eventually, the small time investors are going to get tired of stocks, and then will be the time to short GTW. But as long as the small time guys are still in dreamland, it is time to short the institutional favorites. The institutions are rationally reacting to the news, the public will be dragged along eventually. -- Carl

To: hpeace who wrote (10917)	12/11/1997 6:35:00 PM
From: PAUL ABERLE	Read Replies (1) \| Respond to of 97611

SUB $1,000 PC: WHO'S GOING TO BUY THEIR KIDS HARDBOUND ENCYCLOPEDIAS WHEN THEY CAN BUY A CD TO STICK IN A SUB $1,000 PC? THE BABY BOOMETTE WILL FUEL DEMAND. I SEE HARDBOUND ENCYCLOPEDIAS AT GARAGE SALES. I SAW MY POOR RELATIVES BUYING A $300 TOY COMPUTER FOR XMAS 2 YEARS AGO. WHEN I WENT TO COLLEGE A COMPUTER WASN'T A PC. TODAY, WHO IN COLLEGE DOESN'T HAVE A PC?! WHIPLASH: WE'VE BEEN IN A DESCENDING TRIANGLE SINCE THE HIGH.