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

To: John Koligman who wrote (16210)	2/2/1998 6:07:00 PM
From: Tmanquinn	Read Replies (3) \| Respond to of 97611

Your correct. However, CPQ has evolved into an 800 pound gorilla, that will never know what it means to sprint again.

To: John Koligman who wrote (16210)	2/2/1998 6:11:00 PM
From: Jimbo Cobb	Respond to of 97611

You are not taking into account the new shares which will be issued for DEC...if you want to include the sales, you must include the shares as well... But your point is well taken that DELL's Price-to-Sales ratio is getting "up there" relative to CPQ....of course, their growth is much higher as well.

To: John Koligman who wrote (16210)	2/2/1998 7:02:00 PM
From: Mohan Marette	Read Replies (2) \| Respond to of 97611

John: A keen observation I might add, now if only CPQ get the same valuation as DELL, we would have been looking at $51.00/share, now there is a thought. Ps: I know, I know it's the rate of growth stupid,but still couldn't resist dreaming.

To: John Koligman who wrote (16210)	2/2/1998 8:35:00 PM
From: hitesh puri	Read Replies (2) \| Respond to of 97611

In time you will see the catchup. Right now DELL is in a technical momentum phase the same way NN was 5 months ago when NN went from 40 to 69 and now it may open at 22-23 tomorrow. Momentum players dont give a s**t what the company is doing or how they are going to be competitive 6 months down the road to justify this stock price. They just buy as it is a breakout. The best part is that you know that CPQ will catch up someday for a 50% gain as its fundamentals are far superior. With the BTO program their inventories are approaching Dells levels and so the price differential is virtually non-existent (that really sold Dell computers). In terms of reliability I have yet to see Dell Servers recommended ahead of Compaq or HP by magazines or IT folks. There is no way that Dell's R&D (doubt they have any) out does that of Compaq or HP. And now with a large international sales and support organization of DEC on board can anyone provide any compelling reason why Dell can command such a high PE multiple ?? -hitesh