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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Mary Cluney who wrote (44306)	1/7/1998 2:37:00 PM
From: Hal Butler	Read Replies (2) \| Respond to of 186894

"Given his proven success, Eckhard Pfeiffer, has to have some things up his sleeves. Look for some kind of spectacular acquisition(s). How about Netscape, WSTL, and/or Digital? Any thoughts?" what about amd ?

To: Mary Cluney who wrote (44306)	1/7/1998 3:04:00 PM
From: Road Walker	Read Replies (3) \| Respond to of 186894

Mary, re: "My own feelings are that the Intel/HP alliance on the Merced has forced his hand - and he is declaring independence and will now grow through acquisitions and other means." I don't think this decision has implications beyond trying to generate maximum sales and profits. Thinking from a product managers perspective, my guess is when they put together the line, they felt that people go out to buy the Compaq brand. If all the computers under the $1200. level have AMD chips, their assumtion might have been that the consumer will value the Compaq brand enough to stay in the line, and value the Pentium brand enough to pay more than $1200. (rather than $799. or $999.) If you can step up just 10% of consumers to a higher price point, your overall revenues go up and your overall GM's really go up (I know, I've done the spreadsheets, endlessly). I'm not sure this strategy will work, I'm not sure that consumer will stay within the Compaq line. As an investor in both companies, I have mixed feelings. Intel is still very important to Compaq, as Compaq is to Intel. They may not like each other, but they need each other. John

To: Mary Cluney who wrote (44306)	1/7/1998 6:58:00 PM
From: Joe NYC	Respond to of 186894

Mary, How about Netscape, WSTL, SGI, and/or Digital? How about Sun? The only problem with it is that Sun is in the middle of conflict with MSFT, while CPQ is in the middle of "conflict" with INTC. I don't think Pfeif would want to fight a 2 front war. After all, he is German. Joe

To: Mary Cluney who wrote (44306)	1/7/1998 8:54:00 PM
From: Barry A. Watzman	Read Replies (4) \| Respond to of 186894

>re: "Since achieving the top position at Compaq in 1991, Eckhard Pfeiffer appears to have executed flawlessly as CEO." You've got to be kidding. Pfeiffer "went to war" with Intel once before, in 1995. It got really viscious, and pretty explicit, and he moved almost 100% to AMD processors. And then he got KILLED when the market transitioned to Pentiums, and all of the inventory that CPQ had was 486's that were not selling. He tucked his tail between his legs and patched things up with Intel but fast (there was an unconfirmed rumor that the board laid down the law, which might or might not have been the case, but CPQ took an inventory bath in any case). Now his true stripes are showing again. He HATES Intel, in my opinion it's a very personal vendetta, but hasn't been able to do anything about it for the past two years. Now he thinks that he can. Maybe he's right. Personally, I hope he gets burned bad.