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

To: hpeace who wrote (12366)	12/30/1997 8:38:00 PM
From: Jorge	Read Replies (1) \| Respond to of 97611

Steve......What do you think the execs. at CPQ are thinking about when they see their stock languishing around and looking like an ole hat somebody's kicked to the curb?......Seems to me they might like to give it a boost and state something if it's real positive......Is it possible earnings were neither poor nor stellar, just mediocre...Or is it more their policy to just say nothing, no matter what?.............George

To: hpeace who wrote (12366)	12/31/1997 5:40:00 PM
From: kenya	Read Replies (3) \| Respond to of 97611

Steve, I don't have any margin numbers. I don't follow the company/industry that closely. But I do know that one year ago I bought a Presario 166 Mhz unit for $ 1.6K at Best Buy and today I probably can get the same machine for $8-900. I understand the parts going in have come down also; but it seems reasonable to assume that CPQ isn't making as much on this years 166 as last. I don't know all the projections on computer sales; I assume they will continue to be in strong demand. However, I also know that a lot of companies are well up on the curve as far as outfitting their corporate systems; at least that's the case where I work and we're by no means leading edge. Yes there are emerging markets and continual needs but I have this gut feel that things will be slowing up from the torid pace of the last couple of years. The lower stock price may simply be a rethinking of the P/E multiple that the street is willing to pay for CPQ. I don't think it has anything to do with 4th quarter EPS which I'm sure will be strong as you believe. I think the street is looking forward several quarters and playing a little more conservative moving into 1998. We may get some rally with new year buying; perhaps into the 60's and I'm playing that angle. However, I wouldn't bet the ranch that the rocket ride will continue. Things may trade flat for a quarter or two until enough information is available to move it up or down. By the way, I value the information you supply to this thread and have read for some time. Thanks.