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

To: Elwood P. Dowd who wrote (12352)	12/30/1997 7:51:00 PM
From: kenya	Read Replies (1) \| Respond to of 97611

I think money managers are being cautious about future profit growth for the box makers. Part due to Asian problems and possible flood of markets with below cost goods. I don't know computer companies over there (Korea/Japan) but am sure there is some capability to do that. Most of what we've heard to date is flood of cheap parts to benefit computer makeers, etc. but not sure that's the full picture. Also, I think that the whole view on PC's and servers may be shifting towards commodity items. Prices continue to drop and profit margins gets squeezed. I know 3 people interested in PC's for Internet play and I can't recommend much above the $1K boxes for them. Why do they need more? Corporate America is much the same way (for general PC use). I'm not an expert in servers but wonder why pricing power won't decline there as well. Profits may continue to climb in '98 but I wouldn't be surprised if a turnaround occurs at some point. Generally, hugh growth doesn't go on indefinitely. I still think CPQ is a good co., and may be poised long term stronger than Dell if acquisitions diversify and/or expand profits.