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

To: Kenneth R Miller who wrote (15829)	1/31/1998 10:56:00 PM
From: Dulane U. Ponder	Read Replies (3) \| Respond to of 97611

Ken, just posting a selection from part 3 of Barron's Roundtable discussion: ...."Q: We know these trends are negative for Intel. How about the others? Samberg: I don't think it hurts Dell very much. Dell has about 9% of the server market. Dell is very innovative. Started to sell PCs on the Internet a little over a year ago. They hit $6 million a day, which would translate into a run rate of 15%-18% of annual sales. We've talked about how the Internet is starting to make a real impact. Obviously Dell has much lower costs. Dell is one of the few companies that will continue to see its average selling price go up, as it gains share in servers. Its margins won't go down, because it's a very efficient supplier. Q: How much of its sales are servers? Samberg: It's a growing percentage of their revenues, but I don't have the number. I just don't think these paradigm shifts are a huge problem for Dell. Compaq is a much more mature company and has already done well in notebooks, desktops and servers. But Compaq has to go into a new distribution mode, which they are trying to do, so inventories are a little full in the channel. They have a short-term issue. But I'm not here to talk about those things. I'm here to talk about some of the opportunities that these changes are going to create. " To me this demonstrates a certain irrational antipathy certain fund managers have taken up against cpq. Dell is lauded and the praise not even supported by fact while cpq receives a perfunctory mention. It's clear that a lot of these managing idiots just want new ponies to flog on in the sprint while the derby winners stay behind at the post. dulane