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

To: sheila rothstein who wrote (17015)	2/7/1998 6:53:00 PM
From: Jim McMannis	Read Replies (3) \| Respond to of 97611

The relative stock prices of Dell and Compaq or any two stocks isn't that important. The capitalization = no.shares outstanding times the stock price is as is...the P.E. ratio etc., % gain, as is a stocks Beta when comparing two stocks. Some stocks like Berkshire Hathaway never split. Somewhere north of $20,000/share last I looked.

To: sheila rothstein who wrote (17015)	2/7/1998 7:36:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 97611

Sheila & Luc: 1) One apparent reason is the number of stocks outstanding. CPQ now has over a billions shares outstanding whereas DELL has only approx.365 million shares outstanding. 2) PE- Look at the PE of each companies,Dell is at some 40 something and CPQ is approx 25 or something.This means investors are willing to pay more for DELL than CPQ based on the the rate of growth in revenue and earnings,both are higher for DELL. If DELL were to have the same # of shares outstanding and earnings & growth rate were similar to CPQ then at these levels Dell wouuld have traded for approx.$37.00. Does it make sense? Perhaps someone else would explain it much better than I.