Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Ibexx who wrote (15823)	1/31/1998 10:18:00 PM
From: Kenneth R Miller	Read Replies (1) \| Respond to of 97611

Ibexx, What are your indicators that the mo players are gone? Regards, Ken

To: Ibexx who wrote (15823)	1/31/1998 10:55:00 PM
From: Loki	Respond to of 97611

Ibexx... If I understand correctly, you are equating momentum players to stock volatility? Maybe the thought behind this statement will answer the question many people have on the CPQ thread. Why doesn't CPQ stock move the way DELL does when there are so many fundamentals in place? Although the fundamentals of CPQ appear to be excellent the perception among "the market" (looking backward I believe) is that DELL is a "better" company. The P/E comparison might shows this. After so many years of high stock market returns people are looking for high profile quick movers. (Reduction in capital gains tax has supported this mind set). As somewhat informed investors we have to remember that we are driving on the highway of many uninformed momentum players who can obvioulsy affect the stock price short term. Why did I buy a DELL computer (1995) and later buy CPQ stock (1997)? Dell was better advertised and more accessible to purchase a computer. Maybe the answer is too simple. I thought they were both good companies. I believe that DELL has implemented its efficiencies to a higher degree than CPQ, in being profitable. In implementing the same, (ie. BTO) I believe CPQ has more upside. The DEC merger has reduced that for the moment while giving the company the potential for long term stability. It took me some time to realize just how much stocks move short term, with momentum, when fundamentals have not changed. Good point, Ibexx, we shouldn't forget, we are not alone. Loki