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

To: otter who wrote (17438)	2/15/1998 11:37:00 AM
From: HoodBuilder	Read Replies (3) \| Respond to of 97611

A question for the thread. . . As a CPQ stockholder I see a company that has decided that price in the PC sector is more important than anything else. When DELL, GTW and the others are still selling high priced systems it is easy to open any newspaper, circular etc and see Compaq machines for $800.00. Are they subscribing to the motto, "we make up in volume what we loose on each machine" Clearly the competition has greater margins but does CPQ sell twice the volume as the competition? Component prices are falling like stones but can this alone save the PC makers from giving away product. Responses appreciated

To: otter who wrote (17438)	2/15/1998 1:49:00 PM
From: CENTrader	Read Replies (1) \| Respond to of 97611

Ray, Thank you for that LONG, informative & enlightening post. NOW TAKE DEEP BREATHS.....! It should be interesting to see how CPQ mgt. will restructure this new company. As hpeace has suggested, we will most likely see numerous layoffs, duplication eliminated, etc., as the two companies are blended together. I have faith that the superb management of Compaq will be very succesful in pulling this off. Hopefully soon, the Michael Dells of this world will be left in the dust.... Thanks Again, Bill

To: otter who wrote (17438)	2/15/1998 3:56:00 PM
From: Spots	Respond to of 97611

Whew, lot's of food for thought here, Ray. A VERY informative and thoughtful post (I'll bet your fingers are tired). You've raised a bunch of good issues. Here's a question for you: To what extent do you suppose CPQ might restrain its own service org at the PC end to get the metal business (as you put it). By this I mean not bid the service component in that end of a deal (whether or not there were upper end components) just to accommodate an independent bidder? If they'd be willing to do this as a matter of policy (for partners), Michael Dell would be whistling Dixie (if anybody believed CPQ, that is). You seem to have a lot of insight. Is this realistic or am I whistling Dixie? Regards